Federal prosecutors in Massachusetts charged four individuals in a multi-state scheme to obtain about $7 million in Paycheck Protection Program loans through fraudulent applications. The indictment alleges intermediaries coordinated false borrower information and charged fees, pocketing portions of the proceeds.

Federal authorities in the District of Massachusetts charged four defendants in a multi-state fraud that sought roughly $7 million in Paycheck Protection Program (PPP) loans through fabricated applications. According to the indictment, the defendants worked as intermediaries and organizers who prepared and submitted sham loan paperwork, invented or misrepresented borrower payroll and employment data, and directed proceeds to accounts from which they extracted fees. Prosecutors say the scheme relied on coordinated submission of false borrower information, forged payroll documentation, and payment-routing designed to conceal the fraudulent origins of funds. Investigators allege certain participants charged intermediaries’ fees before dispersing the remainder, effectively siphoning stimulus dollars intended for legitimate small businesses. The filing highlights federal efforts to recover ill-gotten relief funds through forfeiture and restitution and underscores scrutiny of pandemic-era loan programs where rapid disbursement created vulnerabilities. The case reflects continued prioritization by U.S. Attorney’s offices of pandemic-relief fraud, combining forensic financial analysis with traditional investigative techniques to identify networks exploiting emergency assistance programs.