A Massachusetts man has been sentenced in federal court for a COVID fraud scheme that spanned more than two decades. Randolph Dominguez, 58, of Lawrence, was sentenced to 15 months in prison and ordered to pay over $274,000 in restitution for defrauding both COVID-19 relief programs and the Social Security Administration. Dominguez fraudulently obtained roughly $90,000 in Economic Injury Disaster Loan (EIDL) funds and $3,500 in Paycheck Protection Program (PPP) money, spending the relief funds on personal expenses—including an SUV, luxury vacations, and adult entertainment. In a separate but long-running scheme, Dominguez stole over $160,000 in Social Security benefits intended for his deceased father, whose death was never reported.
Federal authorities take pandemic relief fraud and Social Security fraud extremely seriously, with stiff penalties for those found guilty. In Dominguez’s case, he pleaded guilty to wire fraud and theft of government money—both felonies that carry significant prison time, supervised release, and substantial financial penalties. Wire fraud alone can result in up to 20 years in prison, while theft of government funds can carry a sentence of up to 10 years, depending on the circumstances and amounts involved.
For anyone facing charges related to COVID-19 relief fraud or Social Security fraud, the legal consequences can be life-changing. In addition to prison time and restitution, individuals may face long-term damage to their credit, professional reputation, and future employment prospects. Courts may also impose special conditions during supervised release, such as cooperating with the IRS to amend fraudulent tax filings, as in Dominguez’s case.
This case serves as a stark reminder that abusing government relief programs—especially during national emergencies—can lead to federal prosecution and harsh penalties. If you or someone you know is under investigation or facing charges, it’s essential to seek experienced legal representation immediately.
If your business is under federal scrutiny for PPP loan fraud, you need to hire an experienced COVID Fraud attorney who understands the complexities of these allegations. With billions recovered and investigations ongoing, enforcement is far from over. If you or your company received PPP loans and there’s any concern about how they were obtained or reported, now is the time to seek counsel. At Dhar Law, LLP our award-winning COVID & PPP fraud defense and white collar criminal defense team have defended countless high-level criminal and civil cases resulting from federal investigations. Please contact us at 617-880-6455 to speak to a member of our team.
