A Stoughton man has pleaded guilty to participating in a COVID-19 business relief loan fraud scheme that netted participants more than $220,000, according to the U.S. Attorney's Office for the District of Massachusetts.
On Thursday, Patrick Joseph, 41, pleaded guilty to multiple counts of fraud and conspiracy to commit fraud, the U.S. Attorney's Office announced in a press release.
According to the U.S. Attorney's Office, from April 2020 to April 2021, Joseph participated in a scheme that netted parties more than $220,000 through fraudulent applications for COVID-19 Paycheck Protection Business Loans. . He and his co-conspirator, Eve Montima, 55, of Stoughton, filed 12 fraudulent loan applications both in his own name and on behalf of others.
According to the U.S. Attorney's Office, the fraudulent loan applications included non-existent independent contractor income supported by falsified tax documents. In addition to the money they received from loans filed in their own names, Joseph and Montima also received kickback payments from others who benefited from the scheme.
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Montima pleaded guilty in November 2021 to one count of conspiracy to commit bank fraud, according to a press release from the U.S. Attorney's Office. In September 2023, a federal judge sentenced him to three years of supervised release (the first 10 months being home confinement) and to pay $239,595 in restitution.
Joseph was indicted by a federal grand jury in November 2021, and sentencing is scheduled for June 20, according to the U.S. Attorney's Office. He faces decades in prison, more than 10 years of supervised release, and more than $1 million in fines and forfeitures.
