PHILADELPHIA, PA — Giuseppina “Josephine” Leone, a 62-year-old resident of North Wales, Pennsylvania, faced the consequences of her fraudulent actions in federal court on Tuesday. United States District Court Judge Gerald A. McHugh sentenced Leone to 21 months in prison for her involvement in defrauding pandemic relief programs. The court also imposed a $50,000 fine, a one-year supervised release, and a $300 special assessment. Leone was further ordered to pay full restitution amounting to $972,861.75.
Leone, along with her husband, previously owned Ristorante San Marco (RSM), an Italian eatery in Ambler, Pennsylvania. Despite having closed the restaurant permanently in March 2020 due to the COVID-19 pandemic, Leone submitted fraudulent applications for financial aid under the Paycheck Protection Program (PPP) and the Restaurant Revitalization Fund (RRF). The schemes enabled her to illegally secure substantial funds intended to assist struggling businesses and their employees during the pandemic.
In April 2020, she misrepresented the status of RSM, claiming it was operational with 17 employees, to obtain a $138,000 PPP loan. Despite the restaurant’s closure, the funds were approved and later forgiven based on further deceitful claims. A similar approach was employed in January 2021, resulting in an additional $120,000 PPP loan.
Leone’s fraudulent activities extended to the RRF, where in May 2021, she secured $699,196 by falsely claiming the restaurant’s operational status and the intended use of funds for employee wages. Despite having finalized the sale of RSM in June 2021, Leone continued to mislead federal authorities about fund usage.
U.S. Attorney Jacqueline C. Romero addressed the severity of Leone’s actions, emphasizing the importance of preserving the integrity of relief programs designed to assist those genuinely affected by the pandemic. “PPP and the other COVID relief programs were meant to provide emergency aid to businesses and employees financially flattened by the pandemic,” stated Romero. “My office and our partners won’t stand for opportunists like Mrs. Leone thinking they can defraud the federal government, pocket taxpayers’ money, and get away with it. We’ll continue to aggressively pursue and prosecute anyone foolish enough to do so.”
The investigation, a collaborative effort by the Small Business Administration Office of Inspector General, the FBI, and Homeland Security Investigations, led to Leone’s indictment in May 2024. Assistant United States Attorney Angella Middleton prosecuted the case.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.