Federal prosecutors in Brooklyn say a company called Lafayette tapped into COVID-era Paycheck Protection Program funds it should not have received, according to a post from the U.S. Attorney’s Office for the Eastern District of New York. The office quoted U.S. Attorney Joseph Nocella Jr. as saying Congress created the PPP to keep eligible small businesses afloat and that Lafayette “applied for and took government money to which they were not entitled.” The public statement did not say whether any charges have been filed and noted only that investigators will keep digging.
“Unfortunately, Lafayette applied for and took government money to which they were not entitled. Our Office will continue to investigate and hold companies accountable who took advantage of pandemic relief programs.” — US Attorney EDNY (@EDNYnews) May 7, 2026
What prosecutors posted
The statement appeared on the official X account for the U.S. Attorney’s Office for the Eastern District of New York and quotes prosecutors accusing Lafayette of improperly applying for and accepting PPP funds. In…..