A man from Peabody has been arrested and charged with theft of government money after allegedly securing more than $100,000 in coronavirus relief funds through fraudulent means.
Jonathan Carpenter, 41, was indicted on one count of theft of government money. Authorities allege that in 2020, Carpenter obtained an Economic Injury Disaster Loan (EIDL) from the United States Small Business Administration (SBA) by providing false information about a business named Homeland Electric. According to the indictment, Homeland Electric had not existed for approximately five years when Carpenter submitted his application.
Prosecutors claim that Carpenter stated the company was established on March 1, 2011, reported gross receipts of $250,000, and listed eight employees as of January 21, 2020. It is also alleged that he did not disclose a prior criminal record during the application process.
The EIDL program was created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help small businesses affected by the COVID-19 pandemic. The act allowed eligible businesses to apply for financial assistance through SBA loans.
Carpenter was arrested and released under conditions after an initial appearance in federal court in Boston. If convicted, he faces up to ten years in prison, three years of supervised release, and a fine of up to $250,000. Sentencing will be determined by a federal district court judge based on U.S. Sentencing Guidelines and applicable statutes.
United States Attorney Leah B. Foley stated: “The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.”
The case is being prosecuted by Assistant U.S. Attorney Timothy E. Moran from the Securities, Financial & Cyber Fraud Unit. The announcement was made by United States Attorney Leah B. Foley and Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Division. The Peabody Police Department provided valuable assistance during the investigation.