Patrick Joseph, COVID-19 Loan Fraud, Massachusetts 2024

A Stoughton man pleaded guilty yesterday to fraudulently obtaining COVID-19-related small business loans from several financial institutions.

Patrick Joseph, 41, pleaded guilty to one count each of wire fraud, bank fraud and conspiracy to commit wire fraud and bank fraud. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for June 20, 2024.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary loan program directed at small businesses called the Paycheck Protection Program (PPP). Independent contractors were eligible to apply for PPP loans, which were processed by private financial institutions and fully guaranteed by the U.S. Small Business Administration.

Joseph participated in a scheme that obtained over $220,000 in proceeds through fraudulent PPP loan applications submitted between April 2020 and April 2021. Joseph and co-conspirator Yves Montima submitted 12 fraudulent PPP loan applications, both in their own names and on behalf of others, at several financial institutions.

The charge of bank fraud and conspiracy to commit bank fraud provide for a sentence of up to 30 years in prison, up to five years of supervised release, a fine of up to $1 million or twice the gross gain or loss, whichever is greater, and forfeiture. The charge of wire fraud and conspiracy to commit wire fraud provide for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture.

The case was investigated by the U.S. Secret Service, Boston Field Office, with valuable assistance from the U.S. Postal Service, Massachusetts State Police, and the Boston Police Department.

Patrick Joseph, 41, Defendant’s City and State: Stoughton, Massachusetts, Exact Date: November 2021, Outcome: Pleaded guilty to wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud, faces up to 30 years in prison and a fine of up to $1 million.

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