BOSTON (WWLP) – A Stoughton man pleaded guilty in federal court in Boston in connection with filing a fraudulent loan application in order to obtain over $400,000 in Paycheck Protection Program loan funds.

According to the news release sent to 22News by the Department of Justice in Boston, Adley Bernadin, 44, pleaded guilty to one count of wire fraud.

In May 2020, Bernadin submitted a fraudulent application on behalf of a purported home health care company for a PPP loan of over $400,000. In the application, which he submitted through a Small Business Administration-approved lender, Bernadin misrepresented information about the purported home health care company’s employees and payroll expenses and falsified a tax form in an effort to qualify the business for the PPP loan.

After receiving the funds, Bernadin did not use the money for the purported home health care company’s business. Instead, he made mortgage payments on his home and wrote checks to individuals with whom he had a personal relationship.

The CARES Act is a federal law designed to provide emergency financial assistance to Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP.

The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss from the scheme.