Long Island resident Niall Alli was sentenced to 48 months in federal prison today for orchestrating a $1.7 million disaster relief and wire fraud scheme during the COVID-19 pandemic.
In Central Islip, United States District Judge Gary R. Brown imposed the sentence on Alli, who also must pay $1.7 million in restitution to the Small Business Administration (SBA) and forfeit approximately $135,000 in assets, including cryptocurrency and luxury items.
United States Attorney for the Eastern District of New York, Joseph Nocella, Jr., and United States Postal Inspection Service Inspector Daniel Brubaker announced the sentence. ‘Alli saw the COVID-19 programs as a chance to steal from the government,’ Nocella said, detailing how Alli used the funds for extravagant purchases like luxury wristwatches, hotel stays, and high-end dining.
Inspector Brubaker emphasized the impact of such fraud on intended beneficiaries: ‘Government money intended for struggling businesses was exploited for Alli’s lavish lifestyle. Today’s sentence serves as a warning to scammers that exploiting relief programs has consequences.’
Alli, 52, from Inwood, New York, is charged with defrauding the SBA and financial institutions administering the Paycheck Protection Program (PPP) by submitting fraudulent applications for loans intended for distressed small businesses. He utilized the proceeds for personal debts, luxury goods, and cryptocurrency purchases.
The case was prosecuted by Assistant United States Attorney Charles P. Kelly, with support from Paralegal Specialists Samantha Schroder and Ana Maria Tejada. Alli faces a lengthy prison term and substantial financial penalties for his fraudulent activities.
RELATED: Long Island’s Niall Alli Gets 48 Months for COVID-19 Loan Fraud
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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