A Brooklyn man was arrested Monday and charged with defrauding the federal Paycheck Protection Program of almost $2 million, according to federal prosecutors and NBC News 4 Washington.
Leon, 51, is accused of applying in May for $1,904,593 on behalf of his limited liability company. According to court papers, the application claimed the company had 50 employees and an average monthly payroll of $761,838. Prosecutors say the tax forms submitted with the application were fake and were never filed with the IRS. They allege that the documents reported no taxable income and no wages paid to employees during the period listed.
Prosecutors also allege the money was not used for business expenses. Court papers say about $350,000 went toward vehicles, including a 2020 Bentley Continental and a 2020 Cadillac Escalade.
The PPP was created under the CARES Act, which Congress passed in March, to offer forgivable loans to small businesses for costs like payroll during the coronavirus pandemic.
“At a time when so many are suffering from the devastating economic effects of the ongoing pandemic, he allegedly enriched himself at the taxpayers’ expense, stealing funds that were intended by Congress to keep businesses afloat and workers on payroll,” Acting U.S. Attorney Seth D. DuCharme said.
He was scheduled to appear in federal court in Brooklyn on Monday. The charges are allegations, and he is presumed innocent unless proven guilty.
Made to order and shipped to your door.
Miles f’d up. However, I know for a fact that there are other businesses here in BK that misappropriated PPP funds. It ain’t just Black and Latinx business. What about the businesses here in BK that lied on their applications. Folks are using PPP money to buy cars, pay rent on vacation homes, and shit. Why not convict them too.