A Hudson resident, Matthew Dispensa, has been sentenced to 21 months in federal prison for defrauding COVID-19 relief programs. U.S. Attorney Jane E. Young announced the sentencing, which also includes two years of supervised release and a financial resolution of nearly $500,000 under the False Claims Act.
Dispensa, aged 58, was convicted by U.S. District Court Judge Joseph N. Laplante after pleading guilty to multiple counts of bank fraud and attempted wire fraud earlier this year. He was ordered to pay restitution of $342,650 and an additional civil monetary penalty of $150,000.
“The defendant lied to get hundreds of thousands of dollars in pandemic relief funds designed to mitigate the worst economic and public health crisis in decades,” said U.S. Attorney Jane E. Young. “This case underscores how this office will utilize both criminal and civil tools to hold accountable those who defraud pandemic relief programs.”
Special Agent-in-Charge Michael Carpenter from the Treasury Inspector General for Tax Administration (TIGTA) commented on the case: “The Treasury Inspector General for Tax Administration (TIGTA) aggressively investigates violations of Federal laws that impact the taxpayers and programs of the United States,” he stated.
Dispensa applied for loans through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs using fraudulent documents. One application included a request for a $90,400 PPP loan for Gateway Hills LLC—a business with no operations separate from his gym—using false tax documents and reports.
He also secured a $146,650 PPP loan by overstating payroll figures significantly higher than his actual filings showed. The funds obtained were used improperly on gambling activities and investments rather than approved expenses like payroll.
The investigation was led by TIGTA alongside the U.S. Postal Inspection Service, with Assistant U.S. Attorneys Alexander S. Chen handling the criminal proceedings and Raphael Katz managing civil matters.
These actions took place during early pandemic relief efforts under the CARES Act aimed at supporting small businesses affected by COVID-19 through forgivable loans intended primarily for payroll costs.
In response to widespread fraud concerns during this period, the Attorney General established a task force in May 2021 dedicated to combating pandemic-related fraud across various government agencies.
Information regarding potential COVID-19 related fraud can be reported via the Department of Justice’s National Center for Disaster Fraud Hotline or online complaint form.