Shamed Former NYPD Detective Gets 4 Years For ‘Brazenly’ Swindling Federal Loans In COVID-Era Fraud Scheme
A former NYPD detective was sentenced Wednesday to four years in federal prison after admitting his role in a large-scale fraud operation that helped dozens of people obtain pandemic-relief loans through falsified documents.
John Bolden, 47, of Valley Stream, was also ordered to repay $303,138 and surrender $112,002 in illicit proceeds. Prosecutors said the scheme sought to obtain nearly $3 million from the federal government through the Paycheck Protection Program, which was created to help businesses survive the economic turmoil caused by COVID-19.
Federal prosecutors said Bolden abused both his position in law enforcement and his involvement in the tax-preparation industry to facilitate the fraud.
“Despite being a police officer sworn to uphold the law, the defendant organized a scheme that enabled dozens of individuals, including clients, family members and NYPD co-workers, to obtain millions in federal funds using fictitious tax records,” US Attorney for the Eastern District of New York Joseph Nocella said in a statement.
“Bolden brazenly took advantage of a COVID relief program created to help struggling businesses survive an unprecedented national crisis.”
According to court records, Bolden used his role as a partner in a tax-preparation business between May 2020 and October 2022 to prepare and submit fraudulent IRS Schedule C forms that were then used to secure PPP loans for clients.
Investigators said Bolden worked closely with the business’s owner, who was identified in court filings as a co-conspirator. Prosecutors alleged that the owner developed the strategy used to generate the fraudulent loan applications.
Court documents indicate that the owner instructed participants to calculate desired loan amounts by taking the target payout, dividing it by 2.5, and then multiplying the result by 12.
Authorities said Bolden’s mother, Jacqueline Johnson, and his cousin, Christian McKenzie, played key roles in recruiting participants. Prosecutors alleged that they connected numerous clients to the operation and received referral payments, typically between $3,000 and $4,000 for each successful application.
The investigation also found that another NYPD detective, Anthony Carreira, fraudulently obtained PPP funds for himself and his wife and later paid kickbacks to Bolden from the money received.
According to prosecutors, the business owner collected his share of the profits in cash in an effort to conceal the financial trail.
Evidence presented in the case included a May 2020 email sent to Bolden by the owner of the tax-preparation franchise. The email allegedly contained an audio recording advising participants to keep requested loans under $20,000 to maximize the likelihood of loan forgiveness.
“we all want the bread, but we also want the loan forgiveness,” according to court documents.
“That’s the big win,” the owner said.
Bolden pleaded guilty to the charges in February, paving the way for Wednesday’s sentencing.
{Matzav.com}
