SCRANTON – Brian J. Albelli, 46, of Stroudsburg, Pennsylvania, has been sentenced to 48 months in federal prison for orchestrating a $2 million COVID-19 pandemic relief fraud scheme, announced the United States Attorney’s Office for the Middle District of Pennsylvania.
Albelli, who was convicted of wire fraud and money laundering on June 23, 2025, by Senior U.S. District Judge Malachy E. Mannion, submitted roughly 20 fraudulent applications for stimulus funds under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDLs). The applications were filed in the names of various businesses under his control, with Albelli, his wife, and parents listed as signatories.
His scheme resulted in over $2.2 million being funneled into personal accounts for luxury purchases like cars, a boat, and casino withdrawals. A significant portion was channeled through Outbreak Assets LLC, a company he created to receive fraudulent proceeds.
In addition to the prison term, Albelli faces three years of supervised release, full restitution of $2,232,077, and asset forfeiture including funds, vehicles, and jewelry seized by investigators.
The Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDLs), both part of the March 2020 CARES Act, were intended to assist small businesses during the pandemic. Albelli’s misuse of these funds underscores the importance of combating fraud in relief programs.
Established on May 17, 2021, the COVID-19 Fraud Enforcement Task Force has been instrumental in investigating and prosecuting such fraudulent actors. For more information, visit the Department of Justice’s response to the pandemic.
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Key Facts
- State: Pennsylvania
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime|Organized Crime
- Source: Official Source ↗
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