Monroe man sentenced to 48 months’ imprisonment for committing $2 million in COVID-19 pandemic fraud

Date: July 24, 2025

Contact: newsroom@ci.irs.gov

SCRANTON —The United States Attorney’s Office for the Middle District of Pennsylvania announced that Brian J. Albelli, of Stroudsburg, Pennsylvania, was sentenced on June 23, 2025, to 48 months of imprisonment by Senior United States District Judge Malachy E. Mannion, following his convictions of wire fraud and money laundering.

According to Acting United States Attorney John Gurganus, Albelli filed approximately 20 fraudulent applications for pandemic stimulus funds, including under the Payment Protection Program (PPP) and for Economic Injury and Disaster Loans (EIDLs). Albelli filed the applications in the name of various business entities under his and his family’s control, listing himself, his wife, and his parents as the signatories. Some of the applications submitted by Albelli were filed on behalf of corporate entities under his control that did not, in fact, have actual business operations.

Through his scheme, Albelli secured over $2.2 million in pandemic stimulus funds. Instead of using his funds on business expenses, as intended, Albelli used them to purchase automobiles, a boat, and make casino withdrawals, among other personal expenses. A significant portion of the loan proceeds were passed through an account held in the name of Outbreak Assets LLC, a company Abelli created for the sole purpose of receiving fraudulent proceeds, before being used on personal expenses.

In addition to the sentence of imprisonment, Judge Mannion also sentenced Albelli to three years of supervised release following his term of imprisonment, to pay full restitution of $2,232,077, and to forfeit numerous assets seized by investigators which included funds in bank accounts, two vehicles, and jewelry.

The PPP and EIDL programs, both funded by the March 2020 CARES Act, were 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. EIDL funds are offered in low-interest rate loans, designated for specific business expenses, such as fixed debts, payroll, and business obligations.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.

The case was investigated by the Internal Revenue Service. Assistant United States Attorney Kyle A. Moreno prosecuted the case.

IRS Criminal Investigation (IRS-CI) is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a 90% federal conviction rate. The agency has 19 field offices located across the U.S. and 14 attaché posts abroad.