Federal prosecutors in Massachusetts have cracked down on a brazen COVID-19 relief scam, charging four men accused of pocketing thousands of dollars in taxpayer-funded assistance for businesses that simply did not exist.
According to the U.S. Attorney’s Office, District of Massachusetts, the multi-agency investigation resulted in indictments for one count each of wire fraud against:
- Jonathan Arroyo, 43, of Boston
- Daquan Dooley, 37, of Attleboro
- Demetrous Thomas, 36, of Acushnet
- Gianni Williams Johnson, 28, of Boston
Fictitious Businesses and Forged Taxes
Investigators say Arroyo, Thomas, and Williams Johnson orchestrated schemes to submit fraudulent applications through the Paycheck Protection Program (PPP). Armed with fake tax return information that was never actually filed with the IRS, each man successfully secured forgivable loans exceeding $20,000.
Federal authorities noted that none of the defendants owned legitimate businesses, and bank records confirmed that the money never went toward employee payroll or operational expenses as required.
High Stakes at the Slots
Meanwhile, Daquan Dooley allegedly took a different route by targeting the Economic Injury Disaster Loan (EIDL) program. Dooley claimed his nonexistent business suffered pandemic-related losses and needed funds for rent and payroll.
While he secured a $10,000 EIDL advance—a grant designed to provide emergency relief without requiring repayment—bank records tell a wildly different story. Instead of keeping his business afloat, investigators allege Dooley took thousands of dollars straight to a casino, blowing the pandemic relief cash on a gambling spree.
A Crackdown on COVID Fraud
Arroyo, Dooley, and Thomas have already been arrested and appeared in federal court in Boston. Williams Johnson, who is currently detained on an unrelated matter in Suffolk Superior Court, is scheduled to make his federal court appearance at a later date.
The charge of wire fraud carries severe consequences, including up to 20 years in prison, three years of supervised release, and fines reaching $250,000 or double the gross gain/loss of the scheme.
This case highlights the ongoing local and federal push to root out COVID-relief corruption. Federal officials encourage anyone with information on suspected benefit fraud in Massachusetts to report it through the district initiative line at 1-855-SCAM-MA-1 (855-722-6621).
Note: The details outlined in the charging documents are allegations, and all defendants are presumed innocent until proven guilty in a court of law.
