Scranton Reporter

A Scranton man has been charged with multiple counts of fraud related to the COVID-19 pandemic. Yoel Weiss, 42, faces charges in an indictment that includes wire fraud, false statements to the Small Business Administration (SBA), identity theft, unlawful monetary transactions, and witness tampering.

United States Attorney Gerard M. Karam stated that Weiss allegedly operated several corporate entities in Pennsylvania and New York. He is accused of filing at least seven fraudulent applications for pandemic stimulus funds through the Economic Injury and Disaster Loan (EIDL) program. These actions led to charges of seven counts each of wire fraud and making false statements to the SBA. Additionally, Weiss faces three counts of aggravated identity theft for using stolen identities in some applications.

The indictment claims that Weiss submitted applications on behalf of businesses that did not have real operations, providing false information about business establishment dates, employee numbers, revenues, costs of goods sold, and rental income losses. The fraudulent applications reportedly allowed him to obtain over $850,000 in EIDL funds which were used for personal expenses not approved by the program. As a result, he also faces 23 counts of making unlawful monetary transactions with these proceeds.

Weiss is further accused of threatening a witness to influence their testimony before a federal grand jury.

Amy MacNeely from IRS-Criminal Investigation emphasized the importance of maintaining integrity within the American tax system: “The American tax system is designed to provide vital government services to our people. It is not a slush fund for thieves and fraudsters.”

The EIDL program was part of the March 2020 CARES Act aimed at supporting small businesses during financial hardships caused by the COVID-19 pandemic. The loans offered are low-interest rates intended for specific business expenses such as fixed debts and payroll.

This case was investigated by IRS Criminal Investigations with Assistant U.S. Attorney Robert J. O’Hara leading prosecution efforts.

In May 2021, a COVID-19 Fraud Enforcement Task Force was established by the Attorney General to strengthen efforts against pandemic-related fraud through collaboration across government agencies.

Anyone with information regarding attempted COVID-19-related fraud can report it via DOJ’s National Center for Disaster Fraud Hotline or web complaint form.

Federal law stipulates severe penalties for these offenses including up to 20 years imprisonment for serious charges while aggravated identity theft carries a mandatory two-year sentence consecutive to other terms imposed upon conviction after judicial consideration under applicable statutes and guidelines.

Indictments are allegations; individuals charged remain presumed innocent until proven guilty in court proceedings.