Nine Plead Guilty to Stealing Over $1M in COVID-19 Relief Funds

Defendants ordered to repay state after misappropriating pandemic aid intended for struggling businesses

Published on Feb. 15, 2026

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Nine individuals have admitted guilt for misappropriating COVID-19 relief funds in New York, collectively stealing over $1 million that was intended to assist small businesses impacted by the pandemic. The defendants, ranging in age from 41 to 68, submitted fraudulent applications to the New York State Empire Development Pandemic Small Business Recovery Grant Program and transferred the funds to their personal accounts instead of using them for their intended purpose. They have now been ordered to repay the state, with $760,000 already recovered.

Why it matters

This case highlights the importance of upholding the integrity of state-sponsored financial aid programs, ensuring that pandemic relief funds reach the intended beneficiaries - struggling small businesses - rather than being diverted for personal gain. The convictions send a strong message that exploiting disaster relief funds will not be tolerated.

The details

The nine defendants were charged with grand larceny and petit larceny following an investigation by the Queens District Attorney's Office and the New York State Inspector General's Office. They surrendered to authorities between May 6 and May 9, 2025 after submitting fraudulent applications to the New York State Empire Development Pandemic Small Business Recovery Grant Program and transferring the funds to their personal accounts.

  • The defendants surrendered to authorities between May 6 and May 9, 2025.
  • The convictions mark an effort by New York officials to uphold the integrity of state-sponsored financial aid programs during the COVID-19 pandemic.

The players

Melinda Katz

Queens District Attorney, who stated that the defendants admitted to stealing thousands of dollars in state funds intended to support struggling businesses during the COVID-19 pandemic.

Lucy Lang

New York State Inspector General, who noted that exploiting disaster relief funds for personal gain is both criminal and shameful, especially during a global health crisis.

Talia Vogel

Assistant District Attorney and Section Chief in the District Attorney's Frauds Bureau, who is prosecuting the case with the support of various officials from both the NYPD and the Office of the Inspector General.

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What they’re saying

“These nine defendants admitted to stealing thousands of dollars in state funds intended to support struggling businesses during the COVID-19 pandemic.”

— Melinda Katz, Queens District Attorney (Queens District Attorney's Office)

“Exploiting disaster relief funds for personal gain is both criminal and shameful at any time, but particularly during a global health crisis.”

— Lucy Lang, New York State Inspector General (Queens District Attorney's Office)

What’s next

The defendants have been ordered to repay the state a collective sum exceeding $1 million, with $760,000 of the restitution already recovered. The state is on track to recoup the losses inflicted by this scheme.

The takeaway

This case highlights the importance of ensuring that pandemic relief funds reach the intended beneficiaries - struggling small businesses - rather than being diverted for personal gain. The convictions send a strong message that exploiting disaster relief funds will not be tolerated, and that officials are committed to upholding the integrity of state-sponsored financial aid programs.