The Day – Massachusetts man charged with fraud on $400,000 pandemic loan

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BOSTON (AP) — A Massachusetts man who fraudulently obtained more than $400,000 in federal loans intended for businesses battling the coronavirus pandemic used the money for mortgage payments and to pay people close to him, including including her partner, according to federal authorities.

Adley Bernadin, 44, of Stoughton, was charged Thursday with wire fraud, according to a statement from the U.S. Attorney’s Office in Boston. He was released after an initial court appearance. An email seeking comment was left with his attorney.

According to authorities, Bernadin in May 2020 submitted a fraudulent application on behalf of an alleged home health care company for a Paycheck Protection Program loan of approximately $400,000. In that application, he misrepresented information about the company’s employees and payroll expenses and falsified a tax form in an effort to qualify, prosecutors said.

He received the funds and used them to make mortgage payments and to write checks to people he knew, including $135,000 to someone authorities described as his wife or partner.

The program, enacted as part of the CARES Act in March 2020 to provide emergency financial assistance to Americans suffering economically from the effects of the COVID-19 pandemic, provides forgivable loans to small businesses to maintain the employment and certain approved expenses.

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