A man from Long Island, New York is set to face multiple years in prison after his role in a multi-million dollar fraud scheme centered around COVID relief.
Federal prosecutors noted that 52-year-old Niall Alli pleaded guilty to disaster relief fraud and wire fraud. Most of Alli’s fraud was centered around improperly received benefits from the Small Business Association’s Paycheck Protection Program during the pandemic.
Alli will now have to pay back all of the money he received illegally, as well as $135,000 from corporate bank accounts and Ethereum from a Coinbase wallet.
“Alli saw the COVID-19 programs and the deadly pandemic as an avenue for stealing money from the government and taxpayers,” said U.S. Attorney Joseph Nocella Jr.
“He now knows the price of such conduct is the loss of his freedom and full restitution to the Small Business Administration.”
Alli used two different companies to file fraudulent PPP loans with the SBA from April 2020 through November 2021. His applications consisted of fake payroll records and financial data. After his applications went through and he received the money, he doubled down by sending fraudulent forgiveness requests with more fake documents.
Alli reportedly used the money for expensive hotel stays and watches, purchasing two Patek Philippe pieces that cost around $140,000 each. He used the money to amass a fortune in cryptocurrency, and had around $500,000 worth of it in his account at the time of seizure.
Prosecutors say Alli also used the money to fund private school tuition for his child, and that he spent frivolously on things like $800 champagne and $600 Scotch while eating at high-end restaurants.
USPIS Inspector in Charge Daniel Brubaker said that “Alli’s compulsion for fraud exploited funds meant to keep struggling businesses alive during the pandemic.”
“Today’s sentencing proves we will relentlessly pursue anyone who uses the U.S. Mail to defraud the government and steal taxpayer money.”
Alli is set to spend up to four years in prison, and his assets will be seized after his guilty plea.
Based on the Small Business Administration’s 2022 report, an estimated 70,000 or more PPP loans were fraudulent, resulting in total losses that likely exceeded $64 billion.
