A 54-year-old Westfield man pleaded guilty to charges related to a scheme to fraudulently obtain a $900,000 Payroll Protection Program (PPP) loan, U.S. Attorney Philip R. Sellinger announced.
Joseph McKeon, also known as “Jay McKeon,” admitted his role in submitting fraudulent loan and forgiveness applications for a New Jersey business he owned, between February 2021 and February 2022.
The applications contained false information regarding the number of employees the business employed and the wages those employees earned. McKeon also submitted forged documents, including fabricated payroll information, tax returns, and bank statements.
After receiving the loan funds, McKeon withdrew a significant portion of the proceeds in cash and made several large transfers between bank accounts, including one for $315,504 to an Indiana title company.
McKeon pleaded guilty on Tuesday, November 26, 2024, before U.S. District Judge Julien Xavier Neals in Newark federal court to one count of wire fraud and one count of money laundering.
The wire fraud charge carries a potential maximum sentence of 20 years in prison and a fine of up to $250,000, or twice the gross gain or loss involved. The money laundering charge carries a potential maximum sentence of 10 years in prison and a similar fine.
Sentencing is scheduled for April 1, 2025.
The investigation leading to McKeon’s guilty plea was conducted by special agents from the IRS Criminal Investigation, the Social Security Administration’s Office of the Inspector General, and the U.S. Attorney’s Office for the District of New Jersey.
The U.S. Department of Justice has established COVID-19 Fraud Enforcement Strike Forces nationwide to combat pandemic relief fraud. These strike forces focus on large-scale fraud committed by criminal organizations and transnational actors targeting pandemic relief programs.
In April, Attorney General Merrick B. Garland said more than 3,500 defendants had been charged, over $1.4 billion in stolen COVID-19 relief funds seized or forfeited, and more than 400 civil lawsuits filed resulting in court judgments and settlements.
Assistant U.S. Attorney Benjamin D. Bleiberg of the Economic Crimes Unit is representing the government in this case.