Two New York City Police Department Detectives and Two Others Charged in Paycheck Protection Program Fraud Scheme

 

Detective John Bolden Allegedly Assisted More than 65 Persons to Fraudulently Obtain Covid-19 Relief Loans

A criminal complaint was unsealed in federal court in Brooklyn charging John Bolden and Anthony Carreira, who are detectives employed by the New York City Police Department (NYPD), Jacqueline Johnson and Christian McKenzie with conspiracy to commit wire fraud.  The defendants were charged with engaging in a scheme to submit fraudulent applications for loans under the United States Small Business Administration’s (the “SBA”) Paycheck Protection Program (PPP), which Congress created as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.  Bolden, Johnson and McKenzie were arrested today, and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Judge Lois Bloom. Carreira has agreed to surrender at a later date.

Breon Peace, United States Attorney for the Eastern District of New York, and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and charge.

“As alleged, the defendants, including members of law enforcement responsible for upholding the law, defrauded the United States government out of relief funds meant for businesses struggling to survive the pandemic,” stated United States Attorney Peace.  “These arrests are a powerful reminder of this Office’s resolve to prosecute anyone who violated the public trust and took advantage of the COVID crisis by stealing from relief programs.”

Mr. Peace expressed his appreciation to the Suffolk County Police Department; the SBA’s Office of the Inspector General; the Board of Governors of the Federal Reserve System, Office of the Inspector General; the U.S. Department of Education, Office of Inspector General; and the NYPD’s Internal Affairs Bureau for their assistance on the case.

As set forth in court filings, NYPD Detectives Bolden and Carreira owned partnership interests in a franchise location for a tax preparation business.  Between May 2020 and October 2022, Bolden engaged in a scheme to defraud the SBA by working with his clients and co-defendants, including Carreira, Johnson and McKenzie, to fraudulently obtain PPP funds.  Bolden sought to obtain, and in many cases did obtain, PPP funds for himself, his co-defendants and more than 65 individuals by helping submit online loan applications that contained materially false and fraudulent information.  As part of the scheme, Bolden prepared fictitious Internal Revenue Service (IRS) Form Schedule C documentation, which accompanied the loan applications, containing false information about his, his co-defendants’ and his clients’ places of employment, gross income and net income.

The charge in the complaint is an allegation, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a maximum sentence of 30 years.