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 disaster relief and wire fraud scheme during the COVID-19 pandemic. Alli was also ordered to pay $1.7 million in restitution to the Small Business Administration (SBA) and forfeit approximately $135,000 in assets seized from corporate bank accounts and Ethereum from a corporate Coinbase wallet. He pleaded guilty to the charges in December 2023.
The sentencing was announced by Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Daniel Brubaker, Inspector in Charge at 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 thanked the SBA for its 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 controlled two companies—Allicorp Inc. and Oxypaper Inc.—and between April 2020 and November 2021 submitted fraudulent applications for four Paycheck Protection Program (PPP) loans totaling over $1.7 million. The applications included false financial data and fabricated payrolls intended to induce approval from both SBA officials and participating lenders overseeing PPP funds meant for distressed small businesses.
After receiving these funds through fraudulent means, Alli submitted further false documentation seeking loan forgiveness based on fictitious financial statements. He used much of these proceeds for personal benefit—including buying two Patek Philippe wristwatches worth more than $138,000; paying private school tuition; purchasing almost half a million dollars’ worth of cryptocurrency; staying at luxury hotels; as well as other high-end purchases.
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 Office’s Long Island Division.
Alli is 52 years old.
E.D.N.Y Docket No.: 22-CR-395 (S-1) (GRB)
