George Leguen, Wire Fraud and Money Laundering, New Jersey 2024

NEWARK, N.J. – George Leguen, 51, of Paramus, New Jersey, is facing a potential prison sentence after admitting he swindled the federal government out of nearly $150,000 in COVID-19 relief funds. Leguen pleaded guilty on June 12, 2024, to one count of wire fraud and one count of money laundering, according to U.S. Attorney Philip R. Sellinger.

The scheme unfolded between August 2020 and January 2021, when Leguen falsely applied for an Economic Injury Disaster Loan (EIDL) through the Small Business Administration (SBA). He wasn’t looking to save a struggling business; he was looking to line his own pockets. Court documents reveal Leguen fabricated details about his company, inflating employee numbers, annual revenue, and submitting entirely bogus federal tax returns. The gambit worked – he received $149,900 in emergency relief funds.

But the fraud didn’t stop there. Leguen didn’t use the money to keep a business afloat. Instead, he funneled the ill-gotten gains directly into his personal accounts, a classic case of brazen self-enrichment at the expense of taxpayers. The feds, however, weren’t fooled. A multi-agency task force quickly zeroed in on Leguen’s scheme, uncovering the layers of deception.

Leguen now faces a maximum penalty of 20 years in prison and a fine of up to $250,000, or twice the gross gain from the fraud – whichever is greater – on the wire fraud charge. The money laundering charge carries a maximum sentence of 10 years and a fine of $250,000, or twice the value of the laundered funds. His sentencing is scheduled for December 19, 2024, giving him time to consider the gravity of his actions.

The investigation was a coordinated effort involving special agents from IRS – Criminal Investigation, the Drug Enforcement Administration, the U.S. Secret Service, and the U.S. Department of Labor – Office of the Inspector General. This case is being prosecuted as part of the District of New Jersey COVID-19 Fraud Enforcement Strike Force, one of five nationwide teams dedicated to dismantling large-scale pandemic relief fraud schemes.

Authorities are urging anyone with information about COVID-19 fraud to come forward. Tips can be reported to the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or through the online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Assistant U.S. Attorneys Fatime Meka Cano and Aja Espinosa of the Economic Crimes Unit in Newark are handling the prosecution.

RELATED: Paramus Man Admits to COVID-19 Relief Loan Scam

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