A Bergen County man has admitted to defrauding COVID-19 relief funds, leaving a trail of financial destruction in his wake.
George Leguen, 51, of Paramus, New Jersey, pleaded guilty on June 12, 2024, to one count of wire fraud and one count of money laundering in connection with the scheme to defraud the Economic Injury Disaster Loan (EIDL) program.
According to court documents, Leguen applied for an EIDL loan on behalf of his business, submitting false information to secure the loan. He received $149,900 in COVID-19 relief funds, which he then laundered for his personal gain.
Leguen’s scheme to defraud the EIDL program was uncovered by a team of investigators from the IRS-Criminal Investigation, the Drug Enforcement Administration, the U.S. Secret Service, and the U.S. Department of Labor-Office of the Inspector General.
The investigation into Leguen’s activities was led by the District of New Jersey COVID-19 Fraud Enforcement Strike Force, one of five strike forces established by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud.
Leguen faces up to 20 years in prison for the wire fraud charge and up to 10 years for the money laundering charge. He will be sentenced on December 19, 2024.
The government is represented by Assistant U.S. Attorneys Fatime Meka Cano and Aja Espinosa of the Economic Crimes Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
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Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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