Stoughton Man Pleads Guilty to swindling $220K in COVID-19 Relief Fraud, Faces 30 Years in Prison

A Stoughton man has admitted to duping banks out of more than $220,000 by filing fake claims for COVID-19 relief funds meant to help small businesses stay afloat during the pandemic. Patrick Joseph, 41, pleaded guilty to charges including wire fraud, bank fraud, and conspiracy to commit both, in a Federal Court on Wednesday, officials said.

Joseph's scams ran from April 2020 to April 2021, exploiting the Paycheck Protection Program, which aimed to help independent contractors hit hard by the COVID-19 fallout, according to a statement from the U.S. Attorney's Office. He and his co-conspirator, Yves Montima, were indicted after it was found they had filed 12 fraudulent loan applications, both in their names and in the names of others, fabricating income and backing it up with phony tax documents. Not only did they line their own pockets with these loans, but they also took kickbacks from others for whom they fraudulently applied for the loans.

The charges leveled against Joseph could land him up to 30 years in prison for bank fraud and conspiracy, with additional penalties for wire fraud that include up to 20 more years. Fines could reach up to $1 million or twice the gross gain or loss from their scheme, whichever is greater, with forfeiture also on the table. His accomplice, Montima, has already been sentenced after pleading guilty to a count of bank fraud conspiracy last year, as detailed in a U.S. Attorney's Office statement.

Chief Judge F. Dennis Saylor IV has set Joseph's sentencing for the 20th of June. The case was brought to light with assistance from multiple agencies, including the U.S. Secret Service, Postal Service, Massachusetts State Police, and the Boston Police Department, authorities said.

The Department of Justice has been fighting to root out fraudulent claims against COVID-19 relief funds through their COVID-19 Fraud Enforcement Task Force, established in May 2021. The task force is a combined effort of various government agencies to enhance the detection and prosecution of criminal activities targeting pandemic relief programs. The public can report suspected COVID-19 fraud by calling the National Center for Disaster Fraud Hotline or by filling out the NCDF Web Complaint Form.