Niall Alli, a resident of Inwood, New York, was sentenced to 48 months in prison by United States District Judge Gary R. Brown for committing disaster relief and wire fraud totaling $1.7 million during the COVID-19 pandemic. The sentencing took place in federal court in Central Islip. Alli was also ordered to pay $1.7 million in restitution to the Small Business Administration (SBA) and forfeit approximately $135,000 from corporate bank accounts and Ethereum held in a Coinbase wallet.
Alli pleaded guilty to the charges in December 2023. According to prosecutors, he was associated with two companies, Allicorp, Inc. and Oxypaper, Inc., and submitted fraudulent applications for four Paycheck Protection Program (PPP) loans between April 2020 and November 2021. The loan applications included false financial data and fabricated payroll information intended to induce approval from the SBA and participating lenders.
United States Attorney Joseph Nocella, Jr., announced the sentence along with Daniel Brubaker, Inspector in Charge at the United States Postal Inspection Service (USPIS), New York Division.
“Alli saw the COVID-19 programs and the deadly pandemic as an avenue for stealing money from the government and taxpayers, to spend nearly $500,000 to purchase cryptocurrency, $140,000 on two wristwatches, a $36,000 stay at a luxury Manhattan hotel, and an $800 bottle of champagne and $600 bottle of Scotch at fine restaurants,” stated United States Attorney Nocella. “The defendant now knows the price of such conduct is the loss of his freedom and full restitution to the Small Business Administration. Today’s sentence should also put scammers like the defendant on notice that there is no free pass for those who take advantage of important relief programs.”
Nocella expressed appreciation for SBA's partnership on this case.
“Alli's compulsion for fraud resulted in government money intended to assist struggling businesses during the COVID-19 pandemic, exploited for a short-lived lavish lifestyle. Today's sentencing is proof that Postal Inspectors will relentlessly pursue any individuals who take advantage of the U.S. Mail to defraud the government and steal taxpayer funds. I would like to thank the United States Attorney's Office, Eastern District of New York, and the Small Business Administration for their work on this investigation,” stated USPIS Inspector in Charge Brubaker.
Court filings show that after receiving PPP loan proceeds under false pretenses—including submitting fictitious financial statements—Alli used funds for personal expenses such as private school tuition for his child as well as luxury purchases including Patek Philippe wristwatches worth over $138,000.
The case was prosecuted by Assistant United States Attorney Charles P. Kelly with support from Paralegal Specialists Samantha Schroder and Ana Maria Tejada from the Criminal Section of the Long Island Division.
Alli’s conviction underscores ongoing efforts by federal authorities to address fraud related to pandemic relief programs designed to support small businesses facing hardship during COVID-19.
