CONCORD – Michael Rosa, 61, of Salem, and George Adyns, 50, of Sandown, have been charged with participating in pandemic-related wire fraud schemes, Acting United States Attorney John J. Farley announced today.
According to an indictment issued by a federal grand jury, the defendants allegedly executed two schemes to defraud government programs that were intended to provide economic assistance related to the COVID-19 pandemic.
The indictment alleges that Rosa and Adyns laid off employees from Enviromart and KSC Industrial, two companies they controlled. However, the indictment alleges that the defendants directed the employees to continue working for the companies while collecting Unemployment Insurance payments from New Hampshire Employment Security. These payments included the additional $600 emergency weekly benefits provided for by the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The indictment also alleges that Adyns applied for an Economic Injury Disaster Loan (EIDL) funded through the U.S. Small Business Administration, and a Paycheck Protection Program (PPP) loan. The indictment alleges that Adyns made multiple false representations on the loan applications and improperly used the personal identifying information of one the company’s employees to obtain the funds. In addition to the wire fraud charges, Adyns also is charged with aggravated identity theft.
Both men were arrested this morning. They have been released pending their trial, which is currently scheduled for October 5, 2021.
The case was investigated by the U.S. Defense Criminal Investigative Service, the U.S. Labor Department’s Office of the Inspector General, and the U.S. Naval Criminal Investigative Service, with assistance from New Hampshire Employment Security and the New Hampshire Attorney General’s Office. The case is being prosecuted by Assistant United States Attorney Matthew T. Hunter and Special Assistant United States Attorney Alexander S. Chen.
The charges in the indictment are only allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
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 (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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| Component | USAO - New Hampshire; |
| OIG | Department of Labor OIG |