William Felcon of Manhasset Hills sentenced to community service for pandemic loan fraud, Manhattan DA says

A Manhasset Hills man who pleaded guilty to fraudulently obtaining U.S. Small Business Administration loans was sentenced to 50 hours of community service on Tuesday, according to Manhattan District Attorney Alvin L. Bragg’s office.

William Felcon, 66, pleaded guilty in May to second-degree grand larceny, Bragg’s office said. He forfeited $175,000 seized from corporate accounts he controlled, as well as $36,000 out of pocket to cover money owed the SBA.

Felcon’s nephew Thomas A. Felcon, 42, of Howard Beach, Queens also pleaded guilty in May to second-degree attempted grand larceny. He was sentenced to six months in jail on Tuesday.

William Felcon’s lawyer, Murray Richman, and Thomas Felcon’s attorney, Anthony Strazza, did not return calls for comment. 

The indictments were the result of a long-term investigation by the district attorney's Rackets Bureau that began after authorities observed suspicious check-cashing activity, according to prosecutors. That investigation uncovered numerous other fraud cases, including the campaign finance fraud scheme in support of New York City Mayor Eric Adams' election campaign. 

Companies controlled by Thomas Felcon — The Nebula Group and GPT Property Consultants Inc. — each pleaded guilty to one count of scheme to defraud in the first degree, Bragg’s office said.

The companies will forfeit approximately $650,000 seized from their accounts. The money will be paid as restitution to the SBA to cover $409,000 stolen from the Paycheck Protection Program (PPP) and additional funds fraudulently obtained from the Economic Injury Disaster Loan program (EIDL).

A L One Inc., and A L One Consulting Inc. — both New Hyde Park companies controlled by William Felcon — also each pleaded guilty to first-degree scheme to defraud, according to Bragg’s office.

The defendants acknowledged in their pleas that they engaged in a scheme with others to steal PPP money from the SBA and SBA-authorized lending institutions.

Both defendants made false statements in numerous loan applications regarding the companies’ number of employees, payroll amounts and intended use of the loan proceeds to the PPP and EIDL programs, Bragg’s office said.

The loan programs were designed to assist businesses with retaining employees during the coronavirus pandemic emergency, but none of the companies had employees or payroll expenses during the scheme.