A Scranton resident, Yoel Weiss, 43, has been sentenced to 57 months in federal prison after pleading guilty to wire fraud and money laundering related to nearly one million dollars in COVID-19 pandemic relief fraud. The sentencing took place on August 20, 2025, before United States District Judge Karoline Mehalchick. In addition to the prison term, Weiss was ordered to pay $858,000 in restitution and will serve three years of supervised release following his incarceration.
Acting United States Attorney John Gurganus stated that Weiss submitted at least seven fraudulent applications for pandemic stimulus funds through the Economic Injury and Disaster Loan (EIDL) program in June and July of 2020. These applications were filed on behalf of businesses that did not exist or operate as claimed. The forms included false information regarding business establishment dates, employee numbers, gross revenues, costs of goods sold, and lost rental income.
Weiss used the funds for personal expenses rather than approved pandemic-related costs. His expenditures included retail shopping, paying off credit card debt, purchasing a distillery in New York, and other real estate transactions. He also received a sentencing enhancement for attempting to obstruct justice by influencing a witness subpoenaed before a federal grand jury.
“Mr. Weiss deliberately and repeatedly defrauded the Economic Injury Disaster Loan (EIDL) program designed to help small business owners during the COVID pandemic for his own personal enrichment,” said Philadelphia Field Office Special Agent in Charge Yury Kruty. “Yesterday’s sentencing holds Mr. Weiss accountable for his criminal actions and shows that our office continues working to bring charges against individuals who commit these crimes.”
The EIDL program was created under the March 2020 CARES Act to support small businesses facing financial hardship due to the COVID-19 pandemic by providing low-interest loans intended for specific business needs such as payroll and fixed debts.
In May 2021, the Attorney General launched the COVID-19 Fraud Enforcement Task Force within the Department of Justice. This initiative aims to coordinate efforts across agencies to detect and prosecute those involved in pandemic-related fraud schemes. More details about this effort can be found at https://www.justice.gov/coronavirus.
Reports of attempted COVID-19 relief fraud can be made by calling the National Center for Disaster Fraud Hotline at 866-720-5721 or filing an online complaint at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Internal Revenue Service Criminal Investigations division conducted the investigation. Assistant United States Attorney Luisa Honora Berti prosecuted the case.
