William Freeman, IV, of Tobyhanna, Pennsylvania, was sentenced on April 8 to 30 months in prison for wire fraud and making a false tax return, according to the United States Attorney’s Office for the Middle District of Pennsylvania. United States District Judge Joseph F. Saporito, Jr., also ordered Freeman to pay $352,155 in restitution.
The case highlights ongoing efforts by federal authorities to address fraudulent use of pandemic stimulus funds. Officials say such crimes undermine public trust and divert resources intended for legitimate businesses affected by the COVID-19 pandemic.
According to United States Attorney Brian D. Miller, Freeman submitted at least ten applications between 2020 and 2021 seeking funds from both the Economic Injury Disaster Loan program and the Paycheck Protection Program. The applications were made on behalf of several entities under his control that did not have actual business operations. Authorities said these filings included false information about employee numbers, gross revenues, costs of goods sold, and concealed Freeman’s criminal history.
Freeman obtained over $300,000 through these fraudulent applications and used the money for personal expenses without repayment. He also filed falsified tax documents in support of his scheme in an attempt to obtain additional stimulus funds by claiming taxes withheld that had never been paid.
During sentencing, Judge Saporito noted concerns about potential recidivism due to Freeman’s misleading statements regarding his employment history and educational background.
“Today’s sentencing unequivocally affirms the gravity with which federal courts regard violations of the tax laws,” said Yury Kruty, Special Agent in Charge at IRS-Criminal Investigation’s Philadelphia Field Office. “IRS-Criminal Investigation is committed to uncovering the financial lies behind these schemes and holding accountable those who profit at the expense of the American taxpayers.”
The Internal Revenue Service – Criminal Investigations led the investigation while Assistant United States Attorney Luisa Honora Berti prosecuted.
