Niall Alli, a resident of Inwood, New York, was sentenced to 48 months in prison by United States District Judge Gary R. Brown in federal court in Central Islip for his role in a $1.7 million COVID-19 disaster relief and wire fraud scheme. The sentencing also included an order for Alli to pay $1.7 million in restitution to the Small Business Administration (SBA) and approximately $135,000 in forfeiture from assets seized from corporate bank accounts and Ethereum held in a corporate Coinbase wallet. Alli had pleaded guilty to the charges in December 2023.
The announcement was made by Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Daniel Brubaker, Inspector in Charge of the United States Postal Inspection Service (USPIS), New York Division.
“Alli saw the COVID-19 programs and the deadly pandemic as an avenue for stealing money from the government and taxpayers, to spend nearly $500,000 to purchase cryptocurrency, $140,000 on two wristwatches, a $36,000 stay at a luxury Manhattan hotel, and an $800 bottle of champagne and $600 bottle of Scotch at fine restaurants,” stated United States Attorney Nocella. “The defendant now knows the price of such conduct is the loss of his freedom and full restitution to the Small Business Administration. Today’s sentence should also put scammers like the defendant on notice that there is no free pass for those who take advantage of important relief programs.”
Nocella also acknowledged the SBA’s partnership on this case.
“Alli’s compulsion for fraud resulted in government money intended to assist struggling businesses during the COVID-19 pandemic, exploited for a short-lived lavish lifestyle. Today’s sentencing is proof that Postal Inspectors will relentlessly pursue any individuals who take advantage of the U.S. Mail to defraud the government and steal taxpayer funds. I would like to thank the United States Attorney’s Office, Eastern District of New York, and the Small Business Administration for their work on this investigation,” stated USPIS Inspector in Charge Brubaker.
According to court filings, Alli was associated with Allicorp, Inc. and Oxypaper, Inc., two corporate entities he controlled between April 2020 and November 2021 during which he carried out his scheme against federal COVID-19 emergency-relief programs meant for small businesses facing financial distress due to the pandemic. He submitted fraudulent applications containing false financial data and fabricated payrolls for four Paycheck Protection Program (PPP) loans totaling over $1.7 million through these companies.
Once approved for these loans by several financial institutions administering PPP funds under SBA oversight (https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program), Alli filed further fraudulent forgiveness applications using fictitious statements designed to have these debts forgiven without proper justification.
Alli used proceeds from these loans not only on personal debts but also luxury items such as two Patek Philippe wristwatches costing more than $138,000 combined; private school tuition payments; almost half a million dollars’ worth of cryptocurrency purchases; as well as expensive hotel stays.
The prosecution was handled by Assistant United States Attorney Charles P. Kelly with support from Paralegal Specialists Samantha Schroder and Ana Maria Tejada within the Criminal Section of the Long Island Division.
Alli is 52 years old.
E.D.N.Y Docket No. 22-CR-395 (S-1) (GRB)
