Source: United States Department of Justice (National Center for Disaster Fraud)
Defendant Used More than $1.7 Million in Fraudulently Obtained Loans for Personal Expenses, Including Luxury Wristwatches, Luxury Hotel Stays, and Private School Tuition
Earlier today, in federal court in Central Islip, Niall Alli was sentenced by United States District Judge Gary R. Brown to 48 months in prison, in connection with a $1.7 million disaster relief fraud and wire fraud perpetrated during the height of the COVID-19 pandemic. As part of the sentence, Alli was also ordered to pay $1.7 million in restitution to the Small Business Administration (SBA) and approximately $135,000 in forfeiture consisting of assets seized from corporate bank accounts and Ethereum from a corporate Coinbase wallet. Alli pleaded guilty in December 2023.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Daniel Brubaker, Inspector in Charge, United States Postal Inspection Service, New York Division (USPIS) announced the sentence.
“Alli saw the COVID-19 programs and the deadly pandemic as an avenue for stealing money from the government and taxpayers, to spend nearly $500,000 to purchase cryptocurrency, $140,000 on two wristwatches, a $36,000 stay at a luxury Manhattan hotel, and an $800 bottle of champagne and $600 bottle of Scotch at fine restaurants,” stated United States Attorney Nocella. “The defendant now knows the price of such conduct is the loss of his freedom and full restitution to the Small Business Administration. Today’s sentence should also put scammers like the defendant on notice that there is no free pass for those who take advantage of important relief programs.”
Mr. Nocella expressed his appreciation to the SBA for their partnership on the case.
“Alli’s compulsion for fraud resulted in government money intended to assist struggling businesses during the COVID-19 pandemic, exploited for a short-lived lavish lifestyle. Today’s sentencing is proof that Postal Inspectors will relentlessly pursue any individuals who take advantage of the U.S. Mail to defraud the government and steal taxpayer funds. I would like to thank the United States Attorney’s Office, Eastern District of New York, and the Small Business Administration for their work on this investigation,” stated USPIS Inspector in Charge Brubaker.
As set forth in court filings, Alli was associated with two corporate entities, Allicorp, Inc. and Oxypaper, Inc. Between approximately April 2020 and November 2021, during the height of the COVID-19 pandemic, Alli engaged in a scheme to defraud the SBA and several financial institutions administering the Paycheck Protection Program (PPP) of federal COVID-19 emergency-relief funds meant for distressed small businesses. Alli fraudulently applied for, and received, four PPP loans, totaling over $1.7 million, on behalf of the two corporate entities he controlled. The applications contained false information, including bogus financial data and fabricated payrolls, which was designed to fraudulently induce the SBA and lenders administering the PPP programs to approve the loans. Once the loans were approved and disbursed, Alli filed fraudulent forgiveness applications supported by fictitious financial statements and false statements. Alli utilized the loan proceeds to enrich himself, including by discharging personal debts and making extravagant purchases. For example, he purchased two Patek Philippe wristwatches for $138,568; paid for private school tuition for his child; purchased nearly half a million dollars’ worth of cryptocurrency; and spent tens of thousands of dollars on luxury hotel stays.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorney Charles P. Kelly is in charge of the prosecution, with assistance from Paralegal Specialists Samantha Schroder and Ana Maria Tejada.
The Defendant:
NIALL ALLI
Age: 52
Inwood, New York
E.D.N.Y. Docket No. 22-CR-395 (S-1) (GRB)