Yves Montima, 53, of Stoughton, Massachusetts, pleaded guilty yesterday to conspiracy to commit bank fraud in a brazen scheme to steal over $220,000 in pandemic relief funds meant for struggling small businesses. The guilty plea, entered in U.S. District Court, marks the latest takedown in the federal crackdown on CARES Act abuse during the height of the COVID-19 crisis.
Montima, charged on November 4, 2021, admitted to submitting 12 fraudulent Paycheck Protection Program (PPP) loan applications between April 2020 and April 2021. The applications were filed through multiple financial institutions—some in his own name, others in the names of accomplices and third parties. The PPP, created under the Coronavirus Aid, Relief, and Economic Security Act, was designed to keep workers paid during lockdowns, with loans fully guaranteed by the U.S. Small Business Administration and eligible for forgiveness if used properly.
But Montima had no intention of saving jobs. Instead, he and a still-unnamed co-conspirator funneled the stolen funds into their own pockets, allegedly collecting kickback payments from individuals whose identities were used to file the false claims. The scheme exploited loopholes and rushed loan processing during a time of national emergency, turning a lifeline for small businesses into a criminal cash grab.
The charge of conspiracy to commit bank fraud carries a maximum sentence of 30 years in prison, a fine of up to $1 million or double the gross gain—whichever is greater—five years of supervised release, and full forfeiture of ill-gotten proceeds. Sentencing is scheduled for March 9, 2022, before U.S. District Court Judge Denise J. Casper.
Acting U.S. Attorney Nathaniel R. Mendell and Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service’s Boston Field Office, announced the plea. The investigation was a joint effort involving the U.S. Postal Service, Massachusetts State Police, and the Boston Police Department. Prosecution is being handled by Assistant U.S. Attorneys Christopher J. Markham and Philip C. Cheng, both from Mendell’s specialized fraud and money laundering units.
The case falls under the umbrella of the Department of Justice’s COVID-19 Fraud Enforcement Task Force, established May 17, 2021, to target pandemic-related scams. The DOJ urges anyone with information on similar fraud to contact the National Center for Disaster Fraud Hotline at 866-720-5721 or file a report online. Montima remains presumed innocent on all unproven counts until further legal proceedings conclude.
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Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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