Leah B. Foley United States Attorney for the District of Massachusetts | Department of Justice
A Boston resident has been indicted by a federal grand jury on charges related to loan and check fraud involving the Paycheck Protection Program (PPP) and stolen checks. Lonnie Smith-Matthews, 33, faces two counts of wire fraud, one count of theft of government funds, two counts of bank fraud, and two counts of money laundering.
Authorities allege that in 2021, Smith-Matthews obtained two PPP loans by falsely reporting business income of $128,000 despite earning less than half that amount and not operating an actual business. In 2024, he is accused of depositing a U.S. Treasury tax refund check for $150,000 that was altered to be payable to a defunct clothing company under his control. The original check had been issued as an income tax refund to a couple in North Carolina. After depositing the funds, Smith-Matthews allegedly laundered the money using cashier’s checks directed to a purported roofing company.
Later in 2024, prosecutors claim Smith-Matthews deposited a $232,000 check stolen from a New York law firm. This check was also allegedly altered and made payable to his defunct company.
If convicted on the charge of theft of government funds, Smith-Matthews could face up to 10 years in prison and fines up to $250,000. Wire fraud carries penalties of up to 20 years in prison and similar fines; bank fraud could result in up to 30 years in prison with fines reaching $1 million; money laundering carries possible sentences up to 20 years in prison with fines up to $500,000. Sentencing will be determined by a federal district court judge according to relevant guidelines.
“U.S. Attorney Leah B. Foley; Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; Michael Carpenter, Special Agent in charge of the U.S. Dept. of Treasury Inspector General for Tax Administration, Northeast Field Division; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today.” Assistant U.S. Attorney Kriss Basil is prosecuting the case.
Officials emphasize that these are allegations at this stage: “The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.”
