By: Richard L. Smith
A Bergen County man has been sentenced to nearly two years in federal prison for fraudulently securing COVID-19 relief funds intended to assist struggling small businesses, according to a statement released by the U.S. Department of Justice.
George Leguen, 51, of Paramus, was sentenced to 20 months behind bars after pleading guilty to wire fraud and money laundering charges. U.S. District Judge Madeline Cox Arleo handed down the sentence in Newark federal court.
Federal prosecutors said that between August 2020 and January 2021, Leguen orchestrated a scheme to obtain Economic Injury Disaster Loan (EIDL) funds through the Small Business Administration.
Authorities said Leguen submitted false information, including fabricated employee counts, inflated revenue figures, and fraudulent tax returns in support of his loan application.
As a result of the deception, Leguen secured $149,900 in federal relief funds. Investigators determined he later used the money for personal expenses rather than for business recovery, as the program intended.
In addition to the prison term, Leguen was sentenced to three years of supervised release.
He was also ordered to forfeit the full loan amount and pay $174,426.37 in restitution.