Six people, including two from New York City, were arraigned on charges of allegedly stealing almost $11 million of pandemic relief money.
On Thursday, Brooklyn District Attorney Eric Gonzalez announced that the six defendants had been charged in a 31-count indictment after being accused of stealing the pandemic relief money.
According to prosecutors, the defendants include: Gregory Derney Harvey, 61 and Gregory Norris James Harvey Jr., 33, of Florida; Vaughn Harvey, 44, of Queens; Michelle Harvey, 57, of Brooklyn; Leroy Smith, 78, of Valley Stream, N.Y.; and John McAulay, 57, of Schenectady, N.Y.
Along with the U.S. Department of Labor and the U.S. Small Business Administration, prosecutors say that the defendants submitted falsified tax returns, payroll records and bank statements between April 2020 and October 2022 to apply for Paycheck Protection Program and Economic Injury Disaster Loan program loans.
“These defendants allegedly stole millions of dollars from programs meant to help struggling businesses survive the pandemic. As alleged, they submitted fake records and phony loan applications to obtain public and bank funds,” said Gonzalez.
Prosecutors claim that the defendants received more than $6.9 million in relief money after submitting applications in the name of several corporations.
They also allege that two of the defendants, Gregory Derney Harvey and Gregory Norris James Harvey Jr., used some of this money to fraudulently obtain a separate construction loan of around $4 million.
The defendants face charges including conspiracy, grand larceny, attempted grand larceny, falsifying business records and money laundering.
“This indictment alleges the exploitation of critical pandemic relief programs intended to support American workers in a time of national crisis. Every dollar lost to fraud is a dollar stolen from honest, hardworking Americans,” said Anthony D’Esposito, inspector general of the Department of Labor.
Gregory Derney Harvey and Gregory Norris James Harvey Jr. were arraigned on Thursday in Brooklyn Supreme Court. The other four were arraigned on May 26.
All six were released without bail and are due back in court on Aug. 12, 2026.