A Massachusetts man has been charged in a superseding indictment for allegedly using Paycheck Protection Program (PPP) funds to secretly buy a home in the name of a close relative. Bill Dessaps, 47, faces a second count of wire fraud conspiracy. He was previously indicted in January 2024 on charges of wire fraud conspiracy, money laundering, and bank fraud. Five other individuals were also charged in January for their involvement in the PPP fraud scheme.
According to the indictment, Dessaps, who operates a used car dealership in Abington, conspired with individuals in Massachusetts and Florida to submit a fraudulent PPP application for his dealership. The application falsely claimed the dealership had 40 employees and monthly payroll expenses of $334,720. As a result, Dessaps received an $836,800 PPP loan. Dessaps allegedly made kickback payments to those who assisted with the application.
The superseding indictment further alleges that Dessaps used the PPP loan to buy a $750,000 home in the name of a straw buyer, his close relative. This move was due to his poor credit score, which would have prevented him from obtaining a favorable mortgage, and because the PPP prohibits using loan funds for such purchases. The indictment claims Dessaps, his relative, and a real estate agent submitted false mortgage application documents, including inflated income and asset records. Dessaps allegedly transferred PPP funds into a joint bank account he controlled with his relative. When a secondary loan was denied, Dessaps and his agent arranged a sham gift of $127,500 from the agent’s girlfriend, which Dessaps wired to her. Through these actions, Dessaps secured a $510,000 mortgage and lived in the home.
The original indictment also charged Dessaps with attempting to obtain a “Second Draw” PPP loan through another fraudulent application in March 2021.
The charges of wire fraud and wire fraud conspiracy each carry a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss from the scheme. The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the amount involved. The bank fraud charge carries a sentence of up to 30 years in prison, five years of supervised release, and a fine of $1,000,000 or twice the gross gain or loss. Sentences are determined by a federal district court judge based on the U.S. Sentencing Guidelines and relevant statutes.
Acting U.S. Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the IRS Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorneys David M. Holcomb and Alexandra W. Amrhein are prosecuting the case.
The COVID-19 Fraud Enforcement Task Force, established by the Attorney General on May 17, 2021, enhances efforts to combat and prevent pandemic-related fraud. The Task Force investigates and prosecutes the most culpable actors and assists agencies in preventing fraud by identifying resources and techniques and sharing insights from prior efforts. For more information on the Department of Justice’s response to the pandemic, visit their website.
Anyone with information about COVID-19 fraud can report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form.
This article, "Massachusetts Man Charged in Indictment for Using COVID Relief Funds to Buy Home" was first published on Small Business Trends