Boston city official agrees to plead guilty to pandemic loan fraud

A Boston city official has agreed to plead guilty to fraudulently obtaining a federal pandemic relief loan, federal prosecutors announced Thursday.

Reuben Taylor, 40, of Boston, has agreed to plead guilty to one count of wire fraud in connection with a $20,844 Paycheck Protection Program loan he allegedly obtained using fabricated tax documents, according to U.S. Attorney Leah B. Foley’s office.

Since 2008, Taylor has worked for Boston’s Municipal Protective Services — an unarmed, non-sworn security unit within the city’s Property Management Department.

Prosecutors say Taylor applied for the loan in April 2021, claiming he had worked as an independent auto mechanic in 2019. His application allegedly included a fabricated federal tax return and Schedule C stating that he had earned $99,863 as a mechanic and received no wages that year.

But on the 2019 tax return he filed with the IRS, Taylor reported earning $97,561 in wages as a municipal police officer and included a W-2 form from the city, according to Foley’s office.

The federal government established the Paycheck Protection Program during the COVID-19 pandemic to help businesses cover expenses, including payroll.

In August 2021, Taylor allegedly applied to have the loan forgiven, claiming he’d spent the money on payroll for his purported mechanic business. The Small Business Administration forgave the loan the next month, “essentially converting the loan to a taxpayer-funded grant,” Foley’s office said.

Wire fraud carries a maximum sentence of 20 years in prison, up to three years of supervised release, and a fine of up to $250,000, according to Foley’s office.

However, as part of the plea deal, prosecutors will seek one year of probation and nearly $21,000 in restitution, with no jail time, The Boston Globe reported.

“As soon as the City learned of these charges today, the employee was placed on unpaid leave, pending review and a termination hearing,” a city spokesperson told the Globe. “City Hall operations will continue without disruption.”

Taylor’s plea hearing has yet to be scheduled.