COVID Relief Scam Unfolds in West Roxbury: Donovan Scarlett Pleads Guilty to Wire Fraud
BOSTON – In a shocking display of greed, Donovan Scarlett, 25, of West Roxbury, pleaded guilty on May 15, 2024, in federal court in Boston to a fraud charge in connection with a scheme to fraudulently obtain pandemic-related relief funds from the Paycheck Protection Program (PPP).
Scarlett’s scheme began in March 2021 when he submitted a fraudulent PPP loan application on behalf of his purported business. The application contained multiple false statements, including false representations regarding the purported business’s total gross income in 2020 and Scarlett’s criminal history. He also submitted false tax records in support of his loan application.
As a result of his deceit, Scarlett received approximately $13,600, which he spent on non-business-related expenses. The CARES Act created a temporary loan program directed at small businesses called the PPP, which was fully guaranteed by the U.S. Small Business Administration. If the small business used the loan funds for approved purposes, such as payroll, the loan could be forgiven by the financial institution and paid for by the U.S. Small Business Administration.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss from the offense. U.S. District Court Judge Denise J. Casper scheduled sentencing for September 5, 2024.
Scarlett’s guilty plea comes as part of a larger crackdown on COVID-related fraud. In February 2024, he was arrested along with over 40 alleged Heath Street Gang members and associates, who were charged with racketeering conspiracy, drug trafficking, firearms charges, and financial frauds, including COVID-related fraud.
The Organized Crime Drug Enforcement Task Forces (OCDETF) operation, which includes the U.S. Department of Labor, Office of Inspector General, and the Internal Revenue Service Criminal Investigations, is behind the arrests. “This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation,” said a spokesperson for the task force. “OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.”
The case is being prosecuted by Assistant U.S. Attorneys Sarah Hoefle and Lucy Sun of the Organized Crime & Gang Unit. 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 (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.”
Related Federal Cases
- Crypto Con Man Squeezed $700K From Investors · Massachusetts
- Haverhill Crypto Hustle: $625K Gone · Massachusetts
- Grandparent Scam: $5M Raked in, Man Extradited · Massachusetts
- Opioid Epidemic: HHS-OIG’s Crackdown on Treatment Gaps · Massachusetts
- FDIC Appoints Five New Members to Advisory Committee on Community Banking · Mississippi
Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News