Evergreen Reporter

William Freeman, IV, a 45-year-old from Tobyhanna, Pennsylvania, has been charged with wire fraud and making a false tax return. The charges were announced by the United States Attorney’s Office for the Middle District of Pennsylvania.

Acting United States Attorney John C. Gurganus stated that Freeman applied for pandemic stimulus funds through programs such as the Economic Injury and Disaster Loan (EIDL) and Paycheck Protection Program (PPP). These applications were filed on behalf of multiple entities under his control, including Second Haven Services for Youth, Inc., Phoenix Behavioral Health Network, LLC, Pocono Wing Hut, LLC, and Legacy Group Real Estate Company, which lacked legitimate business operations. Freeman allegedly falsified employee counts, gross revenues, and costs of goods sold, and misrepresented his criminal history. He obtained over $300,000 intended for stimulus but used it for personal expenditures instead.

Alongside these actions, Freeman filed falsified tax documents for 2019, claiming taxes that were not paid to the IRS, to seek additional stimulus funds.

The Internal Revenue Service – Criminal Investigations is investigating the case, with prosecution by Assistant United States Attorney Luisa Honora Berti. Yury Kruty, Special Agent in Charge at IRS-Criminal Investigation, Philadelphia, emphasized the agency's commitment: “IRS Criminal Investigation agents will continue to be on the front lines to fight fraud.”

The offenses could result in a maximum penalty of up to 23 years imprisonment, supervised release, and a fine. Sentencing would follow federal guidelines.

The Department of Justice has implemented a COVID-19 Fraud Enforcement Task Force since May 2021, led by the Attorney General, to combat pandemic-related fraud. This task force serves to enhance efforts in identifying and prosecuting fraudsters. More information is available at the Department's official website: https://www.justice.gov/coronavirus.

Public information on COVID-19 fraud can be reported to the Department of Justice’s National Center for Disaster Fraud via hotline or their web complaint form.

Criminal informations are allegations, and all charged individuals are presumed innocent until proven guilty in court.