A New Jersey resident has been sentenced to 20 months in prison for fraudulently acquiring approximately $149,900 through federal Economic Injury Disaster Loans (EIDL). U.S. Attorney Alina Habba announced the sentencing of George Leguen, 51, from Paramus.
Leguen had previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to charges of wire fraud and money laundering. The sentence was delivered in Newark federal court.
Court documents and statements revealed that between August 2020 and January 2021, Leguen engaged in a scheme to obtain COVID-19 relief funds intended for small businesses under the EIDL program. He applied on behalf of a business he owned, providing false information about employee numbers, revenue figures, and tax returns. This led to his approval for an EIDL loan amounting to $149,900, which he then used for personal gain.
In addition to his prison term, Leguen received three years of supervised release. The court ordered forfeiture of $149,900 and restitution totaling $174,426.37.
U.S. Attorney Habba acknowledged the investigation efforts by special agents from several agencies: Internal Revenue Service – Criminal Investigation; Drug Enforcement Administration; U.S. Secret Service; and U.S. Department of Labor – Office of the Inspector General.
The case is part of efforts by the District of New Jersey COVID-19 Fraud Enforcement Strike Force—a unit established by the U.S. Department of Justice—to tackle large-scale pandemic relief fraud across multiple states.
Assistant U.S. Attorney Fatime Meka Cano from the Economic Crimes Unit in Newark represented the government in this case.
The public is encouraged to report any suspected COVID-19 fraud by contacting the National Center for Disaster Fraud Hotline at 866-720-5721 or using their online complaint form.
Defense counsel for Leguen included Jeffrey Lichtman and Matthew Cohan.
