Boston/ Crime & Emergencies
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Published on May 17, 2024
West Roxbury Man Pleads Guilty to Wire Fraud Over Misused Pandemic Relief Funds in BostonSource: Unsplash/ Giorgio Trovato

A West Roxbury man has admitted to wire fraud, pleading guilty to obtaining pandemic relief funds under false pretenses. Donovan Scarlett, a 25-year-old resident, admitted in federal court to lying to secure a Paycheck Protection Program (PPP) loan, which he spent on personal expenses rather than the intended business costs.

The U.S. Department of Justice said Scarlett, hooked and booked this past February alongside more than 40 alleged Heath Street Gang members, fibbed about his business's income and his own criminal record in a March 2021 loan application. The scheme netted him about $13,600 in federal funds, according to authorities.

Scarlett's guilty plea came down in Boston's federal court on May 15, 2024, setting him up for a possible 20-year stint behind bars. Judge Denise J. Casper penciled in the sentencing for September 5, 2024. The charge could also hit Scarlett's wallet with a fine up to $250,000, according to the U.S. Department of Justice.

Formulated by the CARES Act, the PPP loans were meant as a lifeline for drowning small businesses during the pandemic's economic tempest. Administered by banks but backed with the full faith and credit of Uncle Sam, these loans could be forgiven if spent properly, such as on payroll.

Acting U.S. Attorney Joshua S. Levy, along with heads from the Boston Police, the Department of Labor’s Inspector General’s Office, and the IRS's criminal investigation squad, announced the plea. The case is part of the OCDETF program which cracks down on top-shelf crime outfits, with this play being to tackle those muddying the waters of COVID-19 relief.

Officials urge anyone with a whiff of COVID-19 aid fraud to drop a dime to the Department of Justice's National Center for Disaster Fraud Hotline or to tip off through their web form.