A New Jersey resident has been sentenced to 20 months in prison for fraudulently obtaining approximately $149,900 in federal Economic Injury Disaster Loans (EIDL), as announced by U.S. Attorney Alina Habba.
George Leguen, aged 51 from Paramus, New Jersey, had previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to charges of wire fraud and money laundering. The sentence was handed down by Judge Arleo in Newark federal court.
Court documents and statements revealed that between August 2020 and January 2021, Leguen engaged in a scheme to defraud COVID-19 emergency relief funds intended for small businesses under the EIDL program. He applied for the loan through the Small Business Administration on behalf of a business he owned, submitting falsified information regarding employee numbers, revenue figures, and tax returns. As a result of this false information, Leguen received an EIDL loan amounting to $149,900 which he then used for personal gain.
Alongside the prison term, Judge Arleo also sentenced Leguen to three years of supervised release. Forfeiture was ordered at $149,900 with restitution set at $174,426.37.
U.S. Attorney Habba acknowledged the contributions of special agents from several agencies including the Internal Revenue Service – Criminal Investigation Newark Field Office under Special Agent Jenifer Piovesan; the Drug Enforcement Administration led by Special Agent Cheryl Ortiz; the U.S. Secret Service under Special Agent Aaron Hatley; and the U.S. Department of Labor’s Office of Inspector General led by Special Agent Jonathan Mellone.
The case is part of efforts by the District of New Jersey COVID-19 Fraud Enforcement Strike Force, one of five such forces established nationwide by the U.S. Department of Justice to combat pandemic-related frauds involving large-scale operations and transnational actors.
Assistant U.S. Attorney Fatime Meka Cano from Newark's Economic Crimes Unit represented the government in this case.
For those with information on attempted COVID-19 frauds, reports can be made via the Department of Justice’s National Center for Disaster Fraud Hotline or their online complaint form.
Defense counsel included Jeffrey Lichtman and Matthew Cohan.
