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Three Long Islanders, including a New York City Police Department detective, have been charged in a scheme to fraudulently obtain COVID-19 relief funds intended for struggling small businesses.
The charges, announced by federal prosecutors in Brooklyn, reveal a plan to exploit the Paycheck Protection Program (PPP) through false applications.
The defendants include NYPD detective John Bolden, 46, and Jacqueline Johnson, 78, both of Valley Stream, and Christian McKenzie, 46, of Wheatley Heights. Bolden allegedly used his position to assist over 65 individuals in fraudulently securing PPP loans, prosecutors said.
The loans, created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act were designed to help small businesses keep workers employed during the height of the pandemic. A fourth defendant, Anthony Carreira, 42, an NYPD detective, is from Staten Island.
According to the criminal complaint, Bolden and Carreira owned partnership interests in a tax preparation business, which they used as a front to submit fraudulent loan applications.
The applications were supported by fabricated IRS documents, which falsely inflated income and employment information. The scheme ran from May 2020 to October 2022, resulting in significant illegal gains for the defendants and their associates.
“As alleged, the defendants, including members of law enforcement responsible for upholding the law, defrauded the United States government out of relief funds meant for businesses struggling to survive the pandemic,” said Breon Peace, the U.S. Attorney for the Eastern District of New York, while emphasizing the seriousness of the charges.
“These arrests are a powerful reminder of this Office’s resolve to prosecute anyone who violated the public trust and took advantage of the COVID crisis by stealing from relief programs,” he added.
The involvement of local residents, including two from Valley Stream and one from Wheatley Heights, highlights the reach of this fraudulent activity within Long Island communities.
If convicted, the defendants face up to 30 years in prison. The investigation was aided by the Suffolk County Police Department, among other agencies.
The arrests are part of ongoing federal efforts to prevent, detect and prosecute pandemic relief fraud.
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