A Boston man has been indicted by a federal grand jury on charges related to defrauding the Paycheck Protection Program (PPP) and stealing checks, including a U.S. Treasury tax refund and a check from a New York law firm.
Lonnie Smith-Matthews, 33, faces two counts of wire fraud, one count of theft of government funds, two counts of bank fraud, and two counts of money laundering. He was arrested in June 2025 as part of a federal effort targeting stolen U.S. Treasury checks. Smith-Matthews is expected to be arraigned in federal court in Boston at a later date.
According to the indictment, Smith-Matthews obtained two PPP loans in 2021 by falsely claiming $128,000 in business income. Authorities allege he made less than half that amount and did not operate an actual business. In 2024, he allegedly deposited an altered and forged U.S. Treasury tax refund check for $150,000 into an account associated with his defunct clothing company. The original check had been issued as a tax refund to a married couple in North Carolina for their 2023 income taxes. After depositing the funds, prosecutors say Smith-Matthews laundered the proceeds using cashier’s checks payable to a purported roofing company.
The indictment also alleges that later in 2024, Smith-Matthews deposited a $232,000 check stolen from a New York law firm after it was altered and forged to be payable to his defunct company.
If convicted, Smith-Matthews faces up to 10 years in prison for theft of government funds; up to 20 years for each wire fraud charge; up to 30 years for each bank fraud charge; and up to 20 years for each money laundering charge. Fines could range from $250,000 to $1 million depending on the offense. Sentencing will be determined by a federal district court judge following U.S. Sentencing Guidelines.
“U.S. Attorney Leah B. Foley; Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; Michael Carpenter, Special Agent in charge of the U.S. Dept. of Treasury Inspector General for Tax Administration, Northeast Field Division; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today.” Assistant U.S. Attorney Kriss Basil is prosecuting the case.
“The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.”
