In a significant development in Brooklyn, six individuals, including several family members, have been charged with orchestrating a fraudulent scheme that led to the unlawful acquisition of nearly $11 million in pandemic relief and construction loans. According to the Brooklyn District Attorney’s Office, the defendants are alleged to have employed deceptive practices, utilizing fabricated tax returns, false payroll records, and counterfeit bank statements to fraudulently secure over $6.9 million through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds from April 2020 to October 2022. Prosecutors assert that a portion of these ill-gotten gains was subsequently used to obtain a substantial $4 million construction loan.
The individuals charged in this case include Gregory Derney Harvey, Gregory Norris James Harvey Jr., Vaughn Harvey, Michelle Harvey, Leroy Smith, and John McAulay. They were arraigned before Brooklyn Supreme Court Justice Danny Chun, where they were released without bail. Their next court appearance is scheduled for August 12, 2026. The prosecution is being carried out by the District Attorney’s Frauds Bureau, with vital support from various federal agencies, underscoring the seriousness of the alleged offenses.
This case highlights the ongoing efforts to combat fraud during a time when many individuals and businesses were genuinely in need of assistance due to the pandemic. As investigations continue, the implications of this scheme raise important questions about the safeguards in place for relief programs designed to support those facing economic hardship…