In a significant ruling, nine individuals have admitted guilt for misappropriating funds earmarked for pandemic relief to help small company owners affected by the COVID-19 problem. The admissions came after an inquiry by the Queens District Attorney’s Office and the New York State Inspector General’s Office. The offenders, charged with both grand and petty larceny, must return to the state more than $1 million. These nine defendants acknowledged stealing thousands of dollars in state monies meant to help struggling companies during the COVID-19 outbreak,” Queens District Attorney Melinda Katz said on the Queens District Attorney’s Office website. According to the investigation, the money was quickly transferred from corporate to personal accounts, indicating a significant divergence from the funds’ intended use. The culpable parties appear to have been more concerned with stuffing their coffers than with supporting businesses in the midst of an economic downturn.
According to New York State Inspector General Lucy Lang, “Exploiting disaster relief funds for personal gain is both criminal and shameful at any time, but particularly during a global health crisis,” as reported by the Queens District Attorney’s Office. These convictions represent an effort by New York officials to protect the integrity of state-sponsored financial aid programs, ensuring that funds are not diverted from their intended recipients. The crime was discovered via a thorough analysis of the defendants’ and their corporations’ tax filings and bank records, which revealed no preceding economic activity that could justify receiving award monies.
The offenders, aged 41 to 68, who submitted fraudulent applications to the New York State Empire Development Pandemic Small Business Recovery Grant Program, surrendered to police between May 6 and May 9, 2025, according to a news release from the Queens District Attorney’s Office. The nine had stolen from thousands destined for enterprises in desperate need. With $760,000 in compensation already recovered, the state is on track to restore the damages caused by this ill-conceived program.
Assistant District Attorney Talia Vogel, Section Chief in the District Attorney’s Frauds Bureau, is prosecuting the case with assistance from the NYPD and the Office of the Inspector General.
Leave a Reply