CENTRAL ISLIP, NY — Arthur Cornwall, formerly employed by the New York City Transit Authority, and Sean Williams, a former New York State Court Officer, have each been sentenced to 18 months in prison for their roles in a wire fraud conspiracy.
The sentencing, handed down by United States District Judge Joan M. Azrack, relates to their fraudulent receipt of approximately $770,000 in loans from the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDLP) intended to assist small businesses during the COVID-19 pandemic. The Court has also mandated that the defendants pay $770,000 in restitution to the United States Small Business Administration. Both defendants entered guilty pleas in June 2023.
United States Attorney for the Eastern District of New York, Breon Peace, and Daniel Brubaker, Inspector-in-Charge of the New York Division of the United States Postal Inspection Service (USPIS), made the announcement following the sentencing. Peace condemned the misuse of public benefits programs, highlighting the egregiousness of public servants exploiting emergency relief funds for personal gains such as real estate purchases, cryptocurrency investments, and credit card payments.
Between May 2020 and July 2020, Cornwall and Williams engaged in deceptive practices to secure six loans under PPP and EIDLP, leveraging false information about their business entities to mislead the Small Business Administration and the disbursing financial institution. This fraudulent activity was aimed at personal enrichment rather than providing the disaster relief intended by the loan programs.
The sentencing serves as a deterrent and a clear message to potential fraudsters, especially those in positions of public trust, that such crimes against public funds will be pursued vigorously by law enforcement. Following their guilty pleas, both Cornwall and Williams resigned from their government positions, acknowledging the consequences of their actions. The commitment of the USPIS and partner agencies to recovering stolen government funds and holding perpetrators accountable remains steadfast.