BOSTON – Four individuals have been charged for allegedly defrauding the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program by submitting fraudulent applications.
The following individuals have been indicted on one count each of wire fraud:Jonathan Arroyo, 43, of Boston;Daquan Dooley, 37, of Attleboro;Demetrous Thomas, 36, of Acushnet; andGianni Williams Johnson, 28, of Boston. Arroyo, Dooley and Thomas were arrested and appeared in federal court in Boston. Williams Johnson is currently detained on an unrelated matter in Suffolk Superior Court and will appear in federal court in Boston on a later date. According to the charging documents, Arroyo, Thomas and Williams Johnson allegedly submitted fraudulent PPP applications on behalf of themselves, claiming that they owned businesses that suffered economic harm because of the COVID-19 pandemic. They each submitted fraudulent tax return information to justify their applications. They were each awarded forgivable PPP loans in the amount of over $20,000. In fact, it is alleged that none of these individuals owned businesses and their fraudulent tax return information was never filed with the IRS. It is alleged that bank records show that none of these individuals used the loans for payroll expenses.
According to the charging documents, Dooley also allegedly submitted a fraudulent EIDL application on behalf of himself, claiming that he owned a business that suffered economic harm because of the COVID-19 pandemic. Dooley claimed that he would use the loan for business expenses, such as payroll and rent. After Dooley’s application, he was given a $10,000 EIDL advance, which was a grant provided under the EIDL program that did not have to be repaid. Bank records show that Dooley allegedly spent thousands of dollars of the pandemic relief funds at a casino and none of it on business expenses. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the scheme, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley; Jeffrey Grimming, Acting Special Agent in Charge of Homeland Security Investigations in New England; Justin Page, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Anthony P. D’Esposito, Inspector General, Department of Labor, Office of Inspector General made the announcement. Assistant U.S. Attorney Philip C. Cheng of the Criminal Division is prosecuting the case.
On March 26, 2026, United States Attorney Leah B. Foley announced the creation of the Benefit & Voter Fraud Team, a district-wide initiative established in response to the rampant fraud being uncovered across Massachusetts. Members of the public are encouraged to report suspected benefit fraud in Massachusetts by calling 1-855-SCAM-MA-1 (855-722-6621).
On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
The details contained in the charging document are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.