Two former South Shore government employees were each sentenced to 18 months in prison Wednesday for defrauding $770,000 from the Pandemic Business Relief Program.
Arthur Cornwall, 43, of West Babylon, and Sean Williams, 41, of Valley Stream, were also ordered to repay stolen grant and loan funds during their sentencing in federal court in Central Islip. It was done.
The two pleaded guilty in June. As a result, Cornwall lost his job as a signal maintainer for the New York City Transit Authority, and Williams lost his job as a state court clerk.
The men are among 22 Long Islanders accused of stealing nearly $50 million in Paycheck Protection Program loans and COVID-19 economic disaster loans and grants. ing. The federal aid was aimed at helping businesses and nonprofits survive the economic shutdown the government instituted in 2020-21 to slow the spread of the coronavirus.
In addition to their government jobs, Cornwall and Williams, who grew up together in Queens, were partners in several companies that bought, renovated and sold homes, according to court records.
Both companies submitted false PPP and COVID EIDL applications in 2020, and at least six loans totaling $770,000 were received for these companies. Cornwall and Williams falsely claimed in their applications that their companies had employees and profits, prosecutors said.
In a text message to an anonymous co-conspirator, Williams said he wanted $500,000 in pandemic loans instead of the proposed $250,000. He is on record because, with that money, he could “buy out and renovate entire neighborhoods in Pittsburgh.” show.
Instead, prosecutors say Williams used PPP and EIDL funds to buy more than $110,000 in real estate, buy more than $33,000 in virtual currency, and pay off more than $20,000 in personal credit card debt. Stated.
Cornwall used PPP and EIDL funds to pay off more than $31,000 in personal credit card debt.
In all, the men paid an unidentified co-conspirator $147,000 in kickbacks, prosecutors said.
