Four Charged in Boston Pandemic Relief Fraud Scheme
Federal prosecutors allege the men submitted fraudulent loan applications to obtain thousands in COVID-19 relief funds.
Updated on Oct. 22, 2026 in Financial Crime
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Federal authorities have indicted four men on wire fraud charges related to pandemic-era relief programs. Prosecutors allege the defendants submitted falsified business and tax information to secure PPP and EIDL funding.
Why it matters
The case highlights ongoing federal efforts to recover taxpayer funds dispersed during the COVID-19 pandemic through fraudulent claims. Each defendant faces significant penalties if convicted on the wire fraud charges.
Three defendants made their initial court appearances in Boston, while one suspect remains detained on an unrelated matter. The charges carry a maximum sentence of 20 years in prison and fines up to $250,000 per count.
The players
Jonathan Arroyo
He is one of the four defendants indicted on wire fraud charges for allegedly submitting fraudulent PPP loan applications.
Daquan Dooley
An Attleboro resident charged with wire fraud for allegedly submitting a fraudulent EIDL application and spending funds at a casino.
Demetrous Thomas
An Acushnet resident indicted for his alleged role in submitting fraudulent PPP loan applications to secure federal relief funds.
Gianni Williams Johnson
He is one of the defendants facing wire fraud charges for allegedly submitting fraudulent applications for PPP loans.
The details
Jonathan Arroyo, Daquan Dooley, Demetrous Thomas, and Gianni Williams Johnson are accused of fabricating business ownership and tax documents to qualify for loans. Records allegedly indicate that Dooley utilized his $10,000 EIDL grant funds for gambling at a casino.
Timeline
March 26, 2026: Leah B. Foley announced the Benefit & Voter Fraud Team.
April 7, 2026: The DOJ announced the National Fraud Enforcement Division.
October 22, 2026: The DOJ announced the indictments of the four men.
Legal Context
This indictment follows a wave of nationwide prosecutions targeting the misuse of pandemic relief funds distributed under the CARES Act. Federal authorities continue to utilize specialized task forces to pursue fraud cases long after the initial disbursement of capital.
While there are no immediate safety advisories for Boston residents, the investigation underscores the ongoing scrutiny of pandemic-era government spending. The public may see continued federal activity as authorities attempt to recover misused tax dollars.
The takeaway
Financial fraud involving government relief programs remains a priority for federal prosecutors well after the programs concluded. Individuals should be aware that false claims made during the pandemic remain subject to active criminal investigation and prosecution.
Further reading
Learn more about local enforcement efforts in the Boston Financial Crime section.
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