Westfield Man Admits Wire Fraud, Money Laundering

WESTFIELD, NJ - A Westfield man admitted his role in a scheme to fraudulently obtain a Payroll Protection Program (PPP) loan on Tuesday, U.S. Attorney Philip R. Sellinger announced.

Joseph McKeon, aka "Jay McKeon," 54, of Westfield, pleaded guilty before Judge Julien Xavier Neals in Newark federal court to an indictment charging him with one count of wire fraud and one count of money laundering.

From February 2021 through February 2022, McKeon submitted fraudulent PPP loan and forgiveness applications for $900,000 on behalf of a New Jersey company he owned, according to documents filed in this case and statements made in court.

McKeon also lied about the number of employees the business employed and the income the employees earned, according to authorities.

McKeon also reportedly submitted forged documents, including fake payroll information, bank statements, tax return documents.

After the victim lender funded the loan, McKeon withdrew a significant amount of the loan proceeds as cash and made several large transfers between bank accounts, including one transfer for $315,504, that was sent to an Indiana title company, according to documents filed in this case and statements made in court.

The wire fraud charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000, or twice the gross gain to McKeon or gross loss to the victim, whichever is greatest.

The money laundering conspiracy count carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain to McKeon or loss to the victim, whichever is greatest.

Sentencing is scheduled for April 1, 2025.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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