United States of America v. Joseph McKeon a/k/a “Jay McKeon”

Newark, New Jersey criminal defense lawyer represented the Defendant charged with $900,000 COVID-19 Relief Program Fraud

Union County Man Sentenced to 24 Months in Prison for $900,000 COVID-19 Relief Program Fraud

A New Jersey man was sentenced to 24 months in prison for his role in a scheme to fraudulently obtain a Payroll Protection Program (PPP) loan, U.S. Attorney Alina Habba announced.



Joseph McKeon a/k/a "Jay McKeon,” 54, of Westfield, New Jersey, pleaded guilty on November 19, 2024, before U.S. District Judge Julien Xavier Neals to an information charging him with one count of wire fraud and one count of money laundering. Judge Neals imposed the sentence in Newark federal court.



From February 2021 through February 2022, McKeon submitted fraudulent PPP loan and forgiveness applications for $900,000 on behalf of a New Jersey company he owned. In support of those applications, McKeon lied about the number of employees the business employed and the income the employees earned. McKeon also submitted forged documents, including fake payroll information, bank statements, tax return documents. After the victim lender funded the loan, McKeon withdrew a significant amount of the loan proceeds as cash and made several large transfers between bank accounts, including one transfer for $315,503.75, that was sent to an Indiana title company.



In addition to the prison term, Judge Neals sentenced McKeon to 2 years of supervised release and ordered to pay $900,000 in restitution.



U.S. Attorney Habba credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Amy Connely; and special agents of the U.S. Attorney's Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation that led to the sentencing.



The government is represented by Assistant U.S. Attorney Benjamin D. Bleiberg of the Economic Crimes Unit in Newark.



The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.



Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice's National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.