U.S. Attorney’s Office for the Middle District of Pennsylvania

Retiree is second Wayne County man to be charged with pandemic fraud

The first alleged fraud, whose charges are now unsealed, totals $1.5 million

Posted 2/22/24

NEWFOUNDLAND, PA — Robert M. Reynolds, a 69-year-old resident of Newfoundland, PA, is the second Wayne County man to be charged with committing COVID-19 pandemic fraud.

The U.S. …

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U.S. Attorney’s Office for the Middle District of Pennsylvania

Retiree is second Wayne County man to be charged with pandemic fraud

The first alleged fraud, whose charges are now unsealed, totals $1.5 million

Photo by Giorgio Trovato on Unsplash

Posted Thursday, February 22, 2024 3:22 pm

Biggest recipients of COVID funds in Wayne

The Paycheck Protection Program (PPP), funded by the March 2020 CARES Act, distributed funds to small businesses to cover up to eight weeks of payroll costs, including benefits. The program was 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.

Wayne County businesses received a total of $106,9 million in PPP funds, with almost all of it used on salaries. All of these loans have been forgiven.

The following businesses in Wayne received $1 million or more:

Settlers Hospitality Group $4.2 million (two loans)

Wayne Memorial Community Health Center Inc. $3.6 million

Top Notch Distributors $3.3 million

Leeward Construction $3.1 million

Pioneer Construction Company $2.2 million

Samhaven Lake LLC DBA Cove Haven Resort $1.6 million

Penn Camps Inc.$1.6 million

Charles W. Grimm Construction Inc. $1.4 million

Samhaven Lake LLC $1.1 million

Camp Westmont Inc. $1 million

NEWFOUNDLAND, PA — Robert M. Reynolds, a 69-year-old resident of Newfoundland, PA, is the second Wayne County man to be charged with committing COVID-19 pandemic fraud.

The U.S. Attorney’s Office for the Middle District of Pennsylvania alleges that between May 2020 and August 2021, Reynolds helped another person file fraudulent applications and weekly certifications for Pandemic Unemployment Assistance (PUA) benefits through the PA Department of Labor and Industry.

The deceptive applications and certifications claimed that Reynolds was unemployed due to the COVID-19 pandemic, had earnings for each quarter of 2019, and was available for employment. In reality, Reynolds was a retiree. As a result of this scheme, he allegedly obtained approximately $36,000 in PUA benefits.

The PUA program, established by the March 2020 CARES Act, aimed to provide unemployment benefits to individuals not eligible for regular unemployment compensation or extended benefits.

Charges unsealed

The fraud in an earlier Wayne County case dwarfs the Reynolds charges.

In this related case, brought last May, charges were unsealed against Christopher J. Miller, a former resident of Newfoundland, PA. Miller faces 54 combined counts related to wire fraud, bank fraud, false statements, identity theft, and unlawful monetary transactions. He allegedly obtained over $1.5 million in pandemic stimulus funds for himself and others.

Miller has been arrested, detained, and has pleaded guilty. He is awaiting sentencing.

The investigation involved the Federal Bureau of Investigation and the Department of Labor, Office of the Inspector General. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.