[ad_1]
The new public service loan forgiveness program explained
The Department of Education has announced a major overhaul of the loan cancellation program that will write off 22,000 borrowers’ debt of nearly $ 1.7 billion.
Just the FAQ, USA TODAY
Massachusetts man who tried to defraud the government with more than half a million dollars in coronavirus relief funds meant to help small businesses stay afloat, then faked his own suicide, has been sentenced to 56 months in prison.
David Staveley, 54, was the first man in the United States to be charged with COVID business loan fraud upon his arrest, the Department of Justice said Thursday.
Staveley and his accomplice David Butziger, 53, of Rhode Island, claimed to have dozens of paid employees at four different companies. But they didn’t own the businesses and no employees worked for them, prosecutors said. The couple submitted applications for nearly $ 543,778 in funds shortly after the small business loan program was announced.
“It was a get-rich-easy scheme,” US District Court Judge Mary S. McElroy said.
Billions of loan frauds: Online Financial Company Processes Facilitated P3 Loan Fraud, Texas University Study Finds
Staveley and Butziger were the first people in the country to be charged with attempting to defraud the CARES Act SBA paycheck protection program. No money was returned to the men, authorities said.
After being charged with fraud and released under house arrest in May 2020, Staveley removed his monitoring device, parked his car near the ocean with his wallet inside, and left suicide notes for associates and family members, the DOJ said. He then used false identities and stolen license plates to travel to different states. He was finally returned to Georgia in late July 2020, after the US Marshals launched an investigation into the fugitives.
Staveley and his mother both pleaded clemency with the judge, claiming Staveley suffered from debilitating PTSD after being assaulted during a previous stay in federal prison. His lawyer claimed he suffered from isolation for the past 14 months.
He has previously made two separate stints in federal prison for stealing $ 284,000 from a minor league baseball team and committing mortgage fraud in New Hampshire.
Butziger is expected to be sentenced on November 1.
USA TODAY Inquiry: Coronavirus contractors double government funds, receiving relief money and contracts
The Paycheque Protection Program was designed so that small businesses could weather the storm of the pandemic, with forgivable loans that could be used to save jobs. A report from the University of Texas, Austin identified more than 1.8 million loans with indications of potential borrower fraud, representing approximately $ 76 billion.
A southern California man was arrested in May this year after federal officials said he fraudulently secured millions of dollars in coronavirus relief funds to buy luxury cars, take lavish vacations and cover personal expenses. A Florida man has been accused of using the millions of fraudulent P3 funds he received to buy a seven-bedroom mansion.
[ad_2]
Source link