A business owner from Westfield, N.J. has been sentenced to 24 months in prison for his role in a scheme to defraud the Payroll Protection Program (PPP) for $900,000.
Joseph McKeon, also known as “Jay McKeon,” who had pleaded guilty to one charge each of money laundering and wire fraud on Nov. 19, 2024, was sentenced on May 6 for his role in a scheme to fraudulently obtain a PPP loan, according to an announcement by the U.S. Attorney's Office of the District of New Jersey.
The sentence was handed down by U.S. District Judge Julien Xavier Neals. McKeon was also sentenced to two years of supervised release to follow his prison sentence, in addition to an order to pay $900,000 in restitution.
According to court documents, between February 2021 and February 2022, McKeon submitted fraudulent PPP loan and forgiveness applications for $900,000 on behalf of a New Jersey company he owned. In support of those applications, McKeon lied about the number of employees the business employed and the income the employees earned.
The trial period also found that McKeon had submitted forged documents, including fake payroll information, bank statements and tax return documents. After the victim lender funded the loan, McKeon withdrew a significant amount of the loan proceeds as cash and made several large transfers between bank accounts, including one transfer for $315,503.75, that was sent to an Indiana title company.
The investigation into McKeon was headed by the IRS Criminal Investigation Division, as well as special agents of the Social Security Administration, the Office of the Inspector General and U.S. Attorney’s Office for the District of New Jersey.