15 More People Charged With CARES Act Fraud In Rhode Island

PROVIDENCE, RI — Twenty-three people are facing federal charges in Rhode Island in connection with fraud related to coronavirus relief funds, the state's U.S. Attorney's Office announced Thursday. Charges were brought against 15 people just this week.

Since the federal Coronavirus Aid, Relief and Economic Security (CARES) Act was passed in March 2020, Rhode Island State Police and the FBI, in conjunction with local police departments, have led investigations into those who "knowingly defrauded or attempted to defraud" the programs that offered emergency assistance during the pandemic. This included the Paycheck Protection Program and the Unemployment Insurance Program.

"This federal money was earmarked for both business owners and individuals who were facing serious economic hardship as a result of COVID-19," State Police Col. James Manni said. "The State Police, working closely with the FBI, US Attorney and RI Attorney General made it a priority to identify those individuals who felt emboldened to take advantage of a crisis affecting our entire nation."

The 23 people facing charges are accused of targeting $31 million in fraudulent aid, the U.S. Attorney's Office said. The 15 people charged this week were accused of filing fake unemployment claims in 11 states, totaling $578,571, about $126,000 of which was from the Rhode Island Department of Labor and Training.

Joseph Bonavolonta, the special agent in charge of the FBI Boston Division, called the people involved "selfish and despicable" for "cash[ing] in on a public health crisis."

"It is critical that every dollar spent goes to those who need it, not to greedy con artists trying to cheat the system," Bonavolonta said. "Those who blatantly steal taxpayer dollars by defrauding government programs during a national emergency will soon find themselves in federal court to answer for their crimes."

Acting Rhode Island United States Attorney Richard Myrus echoed the sentiment, saying it was "disgraceful" that anyone would try to steal money intended for those in need during the public health crisis.

Along with this week's 15 additional charges, several other cases were previously filed. In May 2020, a Warwick man was accused of fraudulently applying for PPP loans, followed by a Middletown business owner who applied for $4.7 million in PPP Loans who was charged in September. Just one month later, five men from Florida were accused of defrauding the state's unemployment system.

"We are all aware that there are individuals who have taken advantage of the pandemic to advance their own financial interests," Attorney General Peter Neronha said. "This broad, ongoing investigation, including the cases charged so far, involves precisely that type of activity. There are various aspects to this probe and varying kinds of schemes, but they all come down to this: as alleged, these defendants and others like them are fraudulently lining their own pockets at the expense of other Rhode Islanders and Americans at the most inopportune time."