A Stroudsburg man, who received $2.2 million in COVID pandemic stimulus funds and used them for his personal expenses, was sentenced on Wednesday in the U.S. District of Pennsylvania Court, Scranton, on wire fraud and money laundering charges.

Brian J. Albelli, 46, was sentenced to serve 48 months of imprisonment by Senior Judge Malachy E. Mannion following his convictions.

According to Acting U.S. Attorney John Gurganus, Albelli filed approximately 20 fraudulent applications for pandemic stimulus funds, including under the Payment Protection Program and for Economic Injury and Disaster Loans.

Police said the man filed the applications in the name of various business entities under his and his family’s control, listing himself, his wife and his parents as the signatories. Some of the applications submitted were filed on behalf of corporate entities under his control that did not have actual business operations, officials said. They said Albelli, instead of using his funds on business expenses, as intended, used them to purchase automobiles, a boat and other personal expenses, as well as to make casino withdrawals.

Police said a significant portion of the loan proceeds were passed through an account held in the name of Outbreak Assets LLC, a company Abelli created for the sole purpose of receiving fraudulent proceeds, before being used on personal expenses.

In addition to the sentence of imprisonment, Judge Mannion also sentenced Albelli to three years of supervised release following his term of imprisonment, to pay full restitution of $2,232,077, and to forfeit numerous assets seized by investigators which included funds in bank accounts, two vehicles, and jewelry.

The PPP and EIDL programs, both funded by the March 2020 CARES Act, were designed to help small businesses facing financial difficulties during the COVID-19 pandemic. PPP funds were offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses. EIDL funds are offered in low-interest rate loans, designated for specific business expenses, such as fixed debts, payroll, and business obligations.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.