Daniel Cleggett was an all-encompassing fraudster committing one scheme after another while playing the part of an altruist, schemes which he failed to mention in his application for COVID-19 relief loans. Cleggett received a total of $794,900 from three Economic Injury Disaster Loan (EIDL) applications that falsely denied involvement in illegal activity.
In 2016, Cleggett founded A Vision from God LLC, which operated sober homes in the Boston area. While grants and funding are often available for these types of programs, sober home revenue generally depends on resident fees. Cleggett conspired with one sober home client to defraud a New York-based family trust that was funding the client’s room and board. They would overcharge the trust by up to $12,500 monthly and issue “refund” checks for themselves.
Cleggett also purchased three properties in the Boston area to be sober homes, but submitted false information indicating the properties would be primary residences. Mortgage interest rates are higher for second homes and investment properties versus for a primary home.. The hidden side to the altruism of a sober home is that it is considered an investment property, and therefore, subject to higher mortgage rates.
In addition to his sober home businesses, Cleggett operated numerous insulation contracting companies that fraudulently earned millions in funding through the state’s Mass Save Program, a partnership that funds energy conservation projects and energy improvements. When he was banned from participating in the program, Cleggett opened another business ultimately receiving almost another million in payments from Mass Save.
Despite certifying that the EIDL proceeds he fraudulently received would only be used for “working capital” Cleggett ultimately used them for luxurious hotel resort vacations to Yellowstone, Montana, and Aruba. And a $37,000 wedding.
On December 8, 2024, Cleggett pleaded guilty to involvement in four different fraud schemes involving sober homes, the Mass Save Program, mortgage lenders and a federal loan program meant to assist businesses during the COVID-19 pandemic.
Shout out to the F.B.I. and the Internal Revenue Service’s Criminal Investigations in this case.
Today’s Fraud of The Day is based on article “Mass. sober home owner pleads guilty to fraud after years of suspicion” published byThe Boston Globe on December 8, 2024.
A Kingston man long suspected of using his Boston area sober homes and other businesses to commit financial scams pleaded guilty to multiple federal charges Friday, officials said.
Daniel Cleggett, 38, formerly of Braintree and Quincy, pleaded guilty to multiple charges related to his involvement in four fraud schemes involving his sober homes, the Mass Save Program, and mortgage lenders. He lived a lavish lifestyle funded by a federal loan program related to COVID-19 pandemic relief, prosecutors said.