State prosecutors accuse six people of using fake businesses to steal more than $336,000 in grant funds from the Pennsylvania Department of Community and Economic Development.
The state attorney general’s office said the ring, led by John Marino of Stroudsburg, used five shell companies to apply for and receive state grants for workforce training.
Members of the group claimed to be company executives and managers when they fraudulently applied for and received the grant money.
Prosecutors said the companies were registered with the Department of State, but none have any employees or conduct any type of business.
Two of the alleged shell companies, YKT and Pocono Developers, claimed 138 employees received job training.
Marino, his wife Donna, and her daughter, Kinchasa Donald, were also charged with welfare fraud. Agents searched their home last year and said it was well-furnished and stocked with expensive electronic devices, including computer equipment worth more than $7,000.
The other defendants were identified as Lovell Rodgers, 53, of Tobyhanna; Patricia McCue, 67, of Staten Island, N.Y.; and Darren Donald, 47, of East Stroudsburg.