Joseph McKeon, aka “Jay McKeon,” of Westfield, N.J., pleaded guilty in U.S. District Court of New Jersey to one count of wire fraud and one count of money laundering related to a scheme to fraudulently obtain a CARES Act Payroll Protection Program (PPP) loan.
According to the indictment, from February 2021 through February 2022, McKeon submitted two fraudulent PPP loan and forgiveness applications for $900,000 on behalf of B & T Builder LLC, a New Jersey company he owned. On the applications, he lied about the number of employees the business employed and the income the employees earned.
“The applications falsely stated that B & T Builders had 60 employees and an average monthly payroll of $360,000. In fact, B & T Builders had no employees and no payroll,” the indictment stated.
McKeon also submitted forged documents, including fake payroll information, bank statements and tax return documents.
After the victim lender funded the loan, McKeon withdrew some of the loan proceeds as cash and made several large transfers between bank accounts, including one transfer for $315,504 to an Indiana title company.
According to the U.S. Attorney’s Office, District of New Jersey, the wire fraud charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000. The money laundering conspiracy count carries a maximum penalty of 10 years in prison and a $250,000 fine.
Sentencing is scheduled for April 1, 2025.