Patrick Joseph, PPP Loan Fraud, Massachusetts 2024

BOSTON – A Stoughton man is facing serious federal charges after allegedly ripping off COVID-19 relief programs to the tune of over $220,000. The scheme involved bogus applications for Paycheck Protection Program (PPP) loans, designed to help struggling small businesses during the pandemic.

Patrick Joseph, 39, was indicted yesterday on one count each of wire fraud, bank fraud and conspiracy to commit wire fraud and bank fraud. Federal prosecutors allege Joseph and a co-conspirator submitted 12 fraudulent applications between April 2020 and April 2021, using both their own names and those of others. They allegedly pocketed kickbacks for submitting applications on behalf of others.

The PPP, created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, offered forgivable loans to independent contractors and small businesses, fully backed by the U.S. Small Business Administration. The indictment claims Joseph and his accomplice exploited this program, filing false claims to secure funds they weren’t entitled to. The feds say the pair walked away with over $220,000 in ill-gotten gains.

If convicted, Joseph faces a hefty prison sentence. The charges of bank fraud and conspiracy to commit bank fraud carry a maximum penalty of up to 30 years in prison, five years of supervised release, a fine of up to $1 million (or twice the gross gain or loss, whichever is greater), and forfeiture of assets. The wire fraud and conspiracy charges carry a maximum sentence of 20 years, three years of supervised release, and a fine of up to $250,000 (or twice the gross gain or loss), also with forfeiture.

Acting United States Attorney Nathaniel R. Mendell and Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office, announced the indictment. The investigation received assistance from the U.S. Postal Service, Massachusetts State Police, and the Boston Police Department. Assistant U.S. Attorneys Christopher J. Markham and Philip C. Cheng are prosecuting the case.

This case is part of a broader effort by the Department of Justice’s COVID-19 Fraud Enforcement Task Force to crack down on pandemic-related fraud. Anyone with information about potential fraud is encouraged to report it to the National Center for Disaster Fraud Hotline at 866-720-5721 or through their web complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. It’s crucial to remember that the indictment contains allegations, and Joseph is presumed innocent until proven guilty in a court of law.

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