A 45-year-old man from Tobyhanna, Pennsylvania, is facing federal charges for allegedly defrauding pandemic relief programs out of more than $300,000.
William Freeman IV has been charged with wire fraud and submitting a false tax return, the U.S. Attorney’s Office for the Middle District of Pennsylvania announced Thursday.
Between 2020 and 2021, Freeman is accused of submitting at least ten fraudulent applications to obtain funds from the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP). He applied on behalf of several entities he controlled, including Second Haven Services for Youth, Phoenix Behavioral Health Network, Pocono Wing Hut, and Legacy Group Real Estate.
Federal prosecutors allege these businesses were not operating legitimately and that Freeman included false employee numbers, fake revenues, and fabricated costs in his applications. He also allegedly failed to disclose a prior criminal record when applying, falsely claiming he had none.
In total, Freeman received more than $300,000 in federal relief funds, which he reportedly used for personal expenses. Authorities say he also submitted a fake 2019 tax return and a falsified W-3 form to support his scheme, falsely indicating taxes were paid to the IRS.
Freeman faces a maximum sentence of 23 years in federal prison if convicted. He is presumed innocent until proven guilty in court.
