What to Know
- A Brooklyn man was sentenced to 72 months in prison on Tuesday after he was convicted of defrauding the federal Paycheck Protection Program (PPP)
- Federal prosecutors said Leon Miles, 51, used nearly $2 million to purchase several high-value vehicles
- To support his claim, Miles filed phony personal and business tax forms that were never filed with the IRS and he reported no taxable income to the IRS, court papers say
A Brooklyn man was sentenced to 72 months in prison on Tuesday after he was convicted of defrauding the federal Paycheck Protection Program (PPP) for almost $2 million.
Federal prosecutors in Brooklyn said Leon Miles, 51, used the coronavirus relief money to purchase a 2020 Bentley Continental for $250,000 and a 2020 Cadillac Escalade for $100,000. Miles pleaded guilty to submitting an application for $1,904,593 in May 2020 on behalf of a limited liability company he owns in Brooklyn.
The PPP is part of the CARES Act passed by Congress in March to provide emergency financial assistance to be used by owners of small businesses. The program provides forgivable loans to business owners for payroll costs, interest on mortgages, rent and utilities.
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Miles falsely claimed the company had 50 employees and an average monthly payroll of $761,838, prosecutors said.
To support his claim, Miles filed phony personal and business tax forms that were never filed with the IRS and he reported no taxable income to the IRS and no wages paid to employees during the relevant period.
Within days of the funds being deposited in his personal savings account, Miles withdrew hundreds of thousands of dollars, some of which he used to buy the vehicles, court papers said.
News
“Leon Miles selfishly enriched himself by defrauding a program designed to alleviate the economic suffering caused by the COVID-19 pandemic,” United States Attorney Breon Peace said in a news release. “The defendant stole nearly $2 million dollars that was intended to keep struggling businesses afloat and honest workers employed, and he spent those funds on personal luxuries.
