Acushnet man among four indicted in federal pandemic relief fraud case

ACUSHNET An Acushnet man is one of four men charged in federal court with wire fraud, accused by prosecutors of filing false applications to collect pandemic relief money.

Demetrous Thomas, 36, of Acushnet was indicted on one count of wire fraud, the U.S. Attorney's Office in Boston said Thursday. Daquan Dooley, 37, of Attleboro, Jonathan Arroyo, 43, of Boston and Gianni Williams Johnson, 28, of Boston each face the same single count.

What prosecutors say

Prosecutors say Thomas, Arroyo and Williams Johnson each applied for a Paycheck Protection Program loan in his own name, claiming to own a business hurt by the COVID-19 pandemic, and backed the application with false tax return information. Each was awarded a forgivable loan of more than $20,000, prosecutors said.

The charging documents allege that none of the three owned a business and that the tax information was never filed with the IRS. Prosecutors say bank records show none of the three used the money for payroll.

Dooley is accused of applying for an Economic Injury Disaster Loan, saying he owned a business harmed by the pandemic and would use the money for business expenses such as payroll and rent. He received a $10,000 advance, a grant under the program that did not have to be repaid, prosecutors said. They say bank records show he spent thousands of dollars of it at a casino and none of it on business expenses.

In court

Grand jury indictments against Thomas, Dooley and Arroyo were filed under seal Oct. 15 in U.S. District Court in Boston, according to court records. Prosecutors asked to unseal the three cases Oct. 20, and magistrate judges granted the requests Oct. 20 and Oct. 21.

Thomas and Dooley were arrested Tuesday, and their first court appearances were set for that afternoon before U.S. Magistrate Judge Donald L. Cabell. Arroyo was arrested Wednesday and appeared before U.S. Magistrate Judge Jessica D. Hedges. He pleaded not guilty to the wire fraud count, and prosecutors did not ask that he be held, according to the court's notes of the hearing. Judges entered orders setting conditions of release in all three cases, court records show.

Williams Johnson is being held on an unrelated matter in Suffolk Superior Court and will appear in federal court in Boston at a later date, prosecutors said.

Thomas' case is assigned to U.S. District Judge Julia E. Kobick, Dooley's to Judge Allison D. Burroughs and Arroyo's to Judge Patti B. Saris. Lawyers from the Federal Public Defender's office represent all three: Shawn Petrini for Thomas and Dooley, and Oscar Cruz Jr. for Arroyo. South Coast 360 News is seeking comment from the defense. Thomas, Dooley, Arroyo and Williams Johnson are presumed innocent unless proven guilty in court.

Possible penalties

Wire fraud carries up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. A federal district court judge decides any sentence based on the U.S. Sentencing Guidelines and the statutes that govern sentencing.

U.S. Attorney Leah B. Foley announced the charges with Homeland Security Investigations in New England, the U.S. Postal Inspection Service's Boston Division and the U.S. Department of Labor's Office of Inspector General. Assistant U.S. Attorney Philip C. Cheng is prosecuting the cases.

Foley announced a Benefit and Voter Fraud Team for the whole district on March 26. Her office asks anyone who suspects benefit fraud in Massachusetts to call 855-722-6621 (1-855-SCAM-MA-1).

Label: Reported by us, from the town's posted records.