A Stroudsburg resident has been sentenced to four years in federal prison after defrauding COVID-19 relief programs of more than $2 million, according to a release from the U.S. Attorney’s Office for the Middle District of Pennsylvania. The case underscores continuing federal enforcement efforts to recover pandemic funds obtained through fraudulent means.
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Brian J. Albelli, 46, was sentenced by a federal judge in Scranton on June 23, 2025, after pleading guilty to wire fraud and money laundering. Authorities said Albelli submitted around 20 fraudulent applications for pandemic stimulus funding through programs such as the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). The applications were made under several business names linked to Albelli and his family, many of which had no actual business operations.
Instead of using the funds for legitimate business purposes, Albelli spent the money on luxury items, including vehicles, a boat, and casino withdrawals. A portion of the funds was routed through an entity called Outbreak Assets LLC, which investigators determined was created specifically to handle the fraudulent proceeds.
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As part of his sentence, Albelli will serve three years of supervised release following his prison term and has been ordered to pay over $2.2 million in restitution. He also forfeited various assets including funds held in bank accounts, vehicles, and jewelry. These enforcement actions reflect the ongoing work of the COVID-19 Fraud Enforcement Task Force, which was established to identify and prosecute pandemic-related financial crimes.
The PPP and EIDL programs, both funded under the 2020 CARES Act, were intended to provide vital financial support to small businesses impacted by the COVID-19 pandemic. Fraudulent abuse of these programs reduces available aid for legitimate applicants and may result in long-term federal penalties.
Article by multiple contributors, based upon information from the U.S. Attorney’s Office, Middle District of Pennsylvania.
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