Westfield Man Sentenced to Two Years for $900,000 COVID-19 Relief Fraud Scheme

Joseph McKeon falsified payroll and tax records to obtain and misuse federal PPP loan funds, resulting in a 24-month prison sentence and full restitution.

A Union County man has been sentenced to 24 months in federal prison for fraudulently obtaining $900,000 through the Paycheck Protection Program (PPP), a COVID-19 relief initiative designed to assist small businesses. U.S. Attorney Alina Habba announced the sentencing of Joseph McKeon, also known as "Jay McKeon," 54, of Westfield, New Jersey.

McKeon previously pleaded guilty before U.S. District Judge Julien Xavier Neals to one count each of wire fraud and money laundering. He was sentenced in Newark federal court, where he also received two years of supervised release and was ordered to pay full restitution of $900,000.

Court documents and testimony revealed that from February 2021 to February 2022, McKeon submitted fraudulent PPP loan and loan forgiveness applications on behalf of a New Jersey business he owned. In these applications, he misrepresented employee numbers and wages, and provided falsified documents, including fake payroll records, forged bank statements, and fabricated tax return forms.

Once the PPP loan was approved and disbursed by a victim lender, McKeon withdrew a substantial portion in cash and executed a series of financial transfers to conceal the funds. This included a single transaction of more than $315,000 sent to an Indiana title company, suggesting possible misuse for personal or undisclosed purposes unrelated to legitimate business operations.

The case was investigated by special agents from the Internal Revenue Service – Criminal Investigation, the Social Security Administration’s Office of the Inspector General, and the U.S. Attorney’s Office for the District of New Jersey. Assistant U.S. Attorney Benjamin D. Bleiberg of the Economic Crimes Unit prosecuted the case.

This prosecution is part of the District of New Jersey’s COVID-19 Fraud Enforcement Strike Force, one of five such strike forces nationwide. These units are tasked with identifying and prosecuting large-scale pandemic-related fraud, often involving coordinated efforts by criminal networks or actors across state lines.

The public is encouraged to report suspected COVID-19 fraud through the National Center for Disaster Fraud Hotline at 866-720-5721 or via the online complaint form at justice.gov/disaster-fraud.