CONCORD- George Adyns, 51, of Sandown, pleaded guilty in federal court to wire fraud, US attorney Jane E. Young announced today.
According to court documents and statements made in court, Adyns executed two schemes to defraud government programs intended to provide economic assistance related to the COVID-19 pandemic.
New Hampshire Employment Security (NHES) administers New Hampshire’s unemployment insurance program. In March 2020, Congress passed legislation providing additional unemployment benefits for people who lost their jobs due to the economic dislocation caused by the coronavirus pandemic. At that time, Adyns was the chief financial officer of several companies located in Plaistow, including Enviromart and KSC Industrial, which were controlled by his co-defendant. At the end of March 2020, Adyns and his co-defendant ordered company employees to file for unemployment benefits with the NHES while continuing to work. This caused the unemployment system to actually pay the wages of employees. As a result, the NHES paid out over $49,000 in fraudulently obtained unemployment benefits.
In response to the pandemic, Congress has also passed other economic measures designed to help small businesses, such as the Paycheck Protection Program (PPP). Under this program, companies could obtain low-interest loans to meet the payroll during the first months of the pandemic. The SBA has also opened up its Economic Disaster Loan Program (EIDL) to businesses. Under this program, businesses could obtain loans for their working capital and normal operating expenses. Adyns made false statements to lenders to fraudulently obtain a PPP and EIDL loan for KSC Industrial. For example, he certified that KSC Industrial was not engaged in illegal activity. However, when making this certification, he knew that he and his co-defendant were fraudulently using the unemployment benefit system to pay the salaries of their employees. Through this scheme, Adyns fraudulently obtained loans totaling over $135,000.
Adyns is scheduled to be sentenced on August 31, 2022.
Adyns’ co-accused pleaded not guilty. The charges in an indictment are only allegations. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt by a court.
The case was investigated by the U.S. Defense Criminal Investigative Service, the U.S. Labor Department’s Office of the Inspector General, New Hampshire Employment Security, and the New Hampshire Attorney General’s Office with assistance from the U.S. Naval Criminal Investigative Service. The case is being prosecuted by Assistant United States Attorney Matthew T. Hunter and Special Assistant United States Attorney Alexander S. Chen.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to mobilize Department of Justice resources in partnership with government agencies to scale up enforcement and prevention efforts. pandemic-related fraud. The task force strengthens efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies administering relief programs to prevent fraud, among other methods, by increasing and integrating coordination mechanisms existing ones, identifying resources and techniques to uncover fraudulent actors and their agendas, and sharing and leveraging information and knowledge gained from previous enforcement efforts. For more information about the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about alleged 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 NCDF’s online complaint form at: https://www. .justice.gov/disaster-fraud/ncdf-disaster-complaint-form.