Massachusetts man charged with $400K pandemic loan fraud
BOSTON (AP) — A Massachusetts man who fraudulently obtained more than $400,000 in federal loans meant for businesses struggling through the coronavirus pandemic used the money on mortgage payments and to pay people close to him, including his partner, federal authorities alleged.
Adley Bernadin, 44, of Stoughton, was charged Thursday with wire fraud, according to a statement from the U.S. attorney's office in Boston. He was released after an initial court appearance. An email seeking comment was left with his attorney.
According to authorities, Bernadin in May 2020 submitted a fraudulent application on behalf of a purported home health care company for a Paycheck Protection Program loan of about $400,000. In that application, he misrepresented information about the company’s employees and payroll expenses and falsified a tax form in an effort to qualify, prosecutors said.
He received the funds and used them to make home mortgage payments and to write checks to people he knew, including $135,000 to a person authorities described as his wife or partner.
The program, enacted as part of the CARES Act in March 2020 to provide emergency financial assistance to Americans suffering economically from the effects COVID-19 pandemic, provides forgivable loans to small businesses for job retention and certain approved expenses.