Boston City Worker Accused in $20K PPP Loan Scam

A Boston city employee is facing serious legal trouble after allegedly scamming the federal government out of tens of thousands of dollars during the pandemic. The man, who worked as a director in the city's Municipal Protective Services, reportedly lied to get a loan meant to help small businesses stay afloat.

According to federal prosecutors, the 40-year-old worker applied for a Paycheck Protection Program loan in April 2021. This program was created to give low-interest, forgivable loans to small businesses struggling during the coronavirus crisis. But instead of being a small business owner, the employee was already working full time for the city.

To trick the system, he submitted fake tax documents. He claimed he made nearly $100,000 in 2019 as an independent auto mechanic, even though he was actually earning a steady salary as a city worker. The fake paperwork showed he had no regular wages that year and was self-employed instead.

Federal officials say the Small Business Administration bought the lie and approved the $20,884 loan. Later that year, the employee applied for loan forgiveness, saying he used the money to pay employees at his fake mechanic shop. The government agreed and wiped out the debt in September 2021, turning what was supposed to be a loan into free money.

Now, the employee has agreed to plead guilty to one count of wire fraud. If convicted, he could face up to 20 years in prison, three years of supervised release, and a fine of up to $250,000. A plea hearing has not been set yet.