Pennsylvania Man Sentenced to Over Four Years in Prison for COVID-19 Fraud Scheme

A Scranton man has been sentenced to federal prison for his role in a scheme that defrauded the COVID-19 pandemic relief programs of nearly one million dollars. According to the U.S. Attorney’s Office for the Middle District of Pennsylvania, Yoel Weiss, 43, received a sentence of 57 months imprisonment and was ordered to pay $858,000 in restitution. Following his incarceration, Weiss will also serve a three-year term of supervised release.

The charges against Weiss stem from fraudulent applications submitted for the Economic Injury and Disaster Loan (EIDL) program during the COVID-19 pandemic in 2020. Acting U.S. Attorney John Gurganus stated that Weiss filed at least seven applications for these stimulus funds using false information. These applications were submitted on behalf of corporate entities that lacked legitimate business operations. The fraudulent submissions included fabricated business establishment dates, employee counts, gross revenues, costs of goods sold, and lost rental income.

Upon receiving approximately one million dollars in stimulus funds, Weiss did not utilize the money for approved pandemic-related business expenses. Instead, the funds were diverted for personal use, including retail purchases, paying off credit card debt, acquiring a distillery in New York, and other real estate transactions. Weiss also faced an enhanced sentence due to obstruction of justice for attempting to interfere with the testimony of a witness subpoenaed by a federal grand jury.

The EIDL program, established under the CARES Act in March 2020, was intended to provide financial assistance to small businesses experiencing difficulties due to the COVID-19 pandemic. These loans were offered at low-interest rates and were designated for specific business expenditures such as payroll and fixed debts. The sentencing of Weiss highlights the ongoing efforts to hold individuals accountable for misusing these critical relief funds.

In response to the widespread fraud impacting pandemic relief efforts, the Department of Justice established the COVID-19 Fraud Enforcement Task Force in May 2021. This task force aims to consolidate governmental resources to combat and prevent pandemic-related fraud, focusing on prosecuting those involved in fraudulent schemes and assisting agencies in safeguarding relief programs.

The investigation into this case was conducted by the Internal Revenue Service, Criminal Investigations. Assistant U.S. Attorney Luisa Honora Berti led the prosecution. Individuals with information regarding attempted fraud involving COVID-19 relief can contact the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or submit a complaint online through the NCDF Web Complaint Form.

Article by Mel Anara, based upon information from the U.S. Attorney’s Office, Middle District of Pennsylvania

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