Brooklyn Man Arrested for Pandemic-Related Loan Fraud

 

Defendant Allegedly Stole Approximately $386,000 in COVID Relief Funds, Allegedly Spent Money for Personal Use, Including Significant Sums at Casinos

Brooklyn District Attorney Eric Gonzalez, together with New York State Inspector General Lucy Lang, today announced that a Brooklyn man has been arraigned on a criminal complaint for allegedly stealing approximately $386,187 in COVID-19 relief funds.

District Attorney Gonzalez said, “This defendant allegedly defrauded a critical pandemic relief program and used the funds to cover his gambling expenses at casinos. Stealing public funds intended to help small businesses recover is a serious allegation and we intend to hold him accountable for his actions.”

NYS Inspector General Lang said, “Exploitation of relief programs strains critical resources and undermines public trust at a time when New Yorkers need both the most. As alleged, the defendant stole funds meant to help small businesses recover from the pandemic for personal gain. Thank you to District Attorney Gonzalez and his office for their collaboration. Together, our agencies will continue working to root out fraud and protect the resources New Yorkers depend on.”

The District Attorney identified the defendant as Jermaine Hydol, 43, of Fort Greene. He is charged in a felony complaint with three counts of second-degree grand larceny and one count of first-degree scheme to defraud. The defendant was arraigned today before Brooklyn Criminal Court Judge Janice Robinson. He was released without bail and ordered to return to court on June 29, 2026.

The District Attorney said that, according to the evidence, the defendant allegedly obtained pandemic relief funds on behalf of three businesses on seven separate occasions between April 1, 2020 and March 30, 2022, through the following state and federal programs: the Empire State Development (ESD), the Economic Injury Disaster Loan program (EIDL) and the Paycheck Protection Program (PPP), for a total theft of $386,187.

These defrauded programs were created to help businesses during the COVID-19 pandemic and required recipients to use the funds for legitimate business expenses. Instead, the defendant allegedly diverted the money for personal use, including significant gambling at casinos such as Mohegan Sun Casino & Resort in Connecticut and Resorts World Casino in Queens.