A Stroudsburg man has been charged with illegally obtaining $2.2 million in pandemic relief funds, and is accused of using the money to buy items such as boats and automobiles.

The U.S. Attorney’s Office for the Middle District of Pennsylvania say that Brian J. Albelli, 45, of Stroudsburg, and formerly of Deerfield Beach, Florida, was charged last week with wire fraud and money laundering.

Court papers say Albelli owned and operated multiple corporate entities in Pennsylvania and Florida.

Albelli allegedly filed approximately 20 fraudulent applications for pandemic stimulus funds, including under the Payment Protection Program, and for Economic Injury and Disaster Loans.

The applications allegedly submitted by Albelli were filed on behalf of corporate entities that did not have actual business operations, and that bore inflated revenues and employee headcount, and nonexistent gross receipts and costs of goods sold. The applications also included a forged Internal Revenue Service income tax return, and forged federal employment tax documents.

Albelli allegedly obtained in excess of approximately $2.2 million in PPP and EIDL funds, for himself and his family members, through filing the fraudulent applications. Instead of using the funds on business expenses, Albelli allegedly used them on purchasing boats and automobiles, real estate, retail shopping, and other personal expenses. Albelli also is charged with committing money laundering by concealing the fraudulent proceeds of his crimes.

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 obligation.

The case was investigated by the Internal Revenue Service’s Criminal Investigations.

The maximum penalties under federal law for both charges are 20 years of imprisonment, a term of supervised release following imprisonment, and a fine.