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Queens Woman Was Charged With PPP Fraud Pled to Misdemeanor Now Gets Time Served

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Jan 31 – Prosecutors on Wednesday announced charges against a Queens woman with Paycheck Protection Program and unemployment fraud - then quickly agreed to her release on unsecured bond.

Inner City Press was there, the only media in the Magistrates Court.

 The announcement was about "charging JASMIN GADSON, an employee of the Port Authority of New York and New Jersey, with wire fraud and theft of government funds for submitting fraudulent applications to obtain unemployment insurance benefits from the New York State Department of Labor at the height of the COVID-19 pandemic in 2020 and 2021.  During that period, GADSON also allegedly submitted fraudulent applications for loans under the United States Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”).  GADSON was arrested this morning and will be presented this afternoon before U.S. Magistrate Judge Stewart D. Aaron in Manhattan federal court."   

It was before 1 pm when Gadson was brought into U.S. District Court for the Southern District of New York Magistrates Court, and was given a free Federal Defender. The Assistant US Attorney told Judge Aaron of the terms of release.

Ms. Gadson walked into the clerk's office to sign her bond, and later walked west on Pearl Street toward Foley Square. 

  Jump cut to October 18, 2023 - Inner City Press was in the SDNY Magistrates Court when Gadson came in to plead guilty to a misdemeanor, six to twelve month guideline - and an agreement to never work not only for the Port Authority but apparently any other government agency. Sentencing was set for January 19, 2024 before Magistrate Judge Cott.

On January 11, the US Attorney's Office wrote it requesting a time served sentence. 

On January 31, Inner City Press attended the sentencing. It was not explained why, beyond mercy, this defendant received such a lighter charge and sentence than others: no jail time at all, paying $78,000 to the US Marshals and perhaps through them partially to Cross River Bank. She agreed to not seek state or Federal employment and now works at Con Edison. Mercy is nice, but it should be available to all, and its grant should be transparent. We have more more on this.

The case is US v. Gadson, 23-cr-532 (Cott)


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