Two businessmen charged with falsely trying to obtain $544,000 in federal loans intended for small businesses amid the coronavirus outbreak - even though 'they had NO employees'
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www.justice.gov
No mug shots so you KNOW they are both CACs
Two businessmen have been accused of fraudulently seeking more than half a million dollars in forgivable loans under the Paycheck Protection Program - the $669 billion relief program introduced by Congress in March to support small businesses struggling in the midst of the coronavirus pandemic.
On Tuesday, the Department of Justice charged David Staveley, 52, and David Butziger, 51, with conspiracy to make false statements to influence the Small Business Administration and conspiracy to commit bank fraud.
They are the first people to be charged with making phony applications for loans under the PPP - but investigators say there are likely to be more in the coming months.
The two men allegedly claimed they needed to pay employees at businesses affected by the COVID-19 crisis, when in reality their businesses were not operating before the pandemic began and had no employees on the payroll.
'Every dollar stolen from the Paycheck Protection Program comes at the expense of employees and small business owners who are working hard to make it through these difficult times,' Assistant Attorney General Brian A. Benczkowski said in a statement released by the DOJ Tuesday.
The duo's alleged crimes were additionally described in the statement as 'reprehensible'.
Authorities say that Staveley, who hails from Andover, Massachusetts, filed loan applications for more than $438,500, claiming that he needed to pay dozens of employees at three restaurants he owned.
However, two of the restaurants weren't open before the pandemic began and he didn't have any connection to the third restaurant he claimed to have owned, authorities said.
Meanwhile, Butziger, of Warwick, Rhode Island, sought a $105,381 loan under the PPP.
He claimed he had seven full-time employees to pay at a business he owned called Dock Wireless.
However, the state of Rhode Island has no record of Butziger paying employees this year and several supposed employees interviewed by agents said they never worked for him or Dock Wireless.
In the DOJ statement announcing the charges, Rhode Island U.S. Attorney Aaron Weisman stated: 'Tens of millions of Americans have lost their jobs and have had their lives thrown into chaos because of the coronavirus pandemic.
'It is unconscionable that anyone would attempt to steal from a program intended to help hard working Americans continue to be paid so they can feed their families and pay some of their bills.'
The Paycheck Protection Program was introduced to help protect jobs amid the COVID-19 crisis, and allows small businesses to apply for low-interest loans of up to $10 million.
The loan proceeds may be used to cover the business' payroll costs, rent, interest, and utilities. The loan may be partially or fully forgiven if the business keeps its employee counts and employee wages stable.
Assistant Attorney General Brian A. Benczkowski told USA Today that he does not believe Staveley and Butzinger are the only people who have filed false claims.
'What we see coming out of Rhode Island is what’s happening across the country. We have a lot of leads,' he stated.
- David Staveley, 52, and David Butziger, 51, were arrested and charged Tuesday with falsely trying to obtain loans under the Paycheck Protection Program
- Staveley filed loan applications for more than $438,500, allegedly claiming he needed assistance to pay his restaurant employees amid the COVID-19 crisis
- However, Staveley's restaurants have not been open since the pandemic began
- Butzinger sought a $105,381 loan to pay seven employees at his business; investigators could not locate any such employees
- The Department of Justice is investigating others who may have tried to fraudulently obtain loans from the Paycheck Protection Program
Two businessmen charged with coronavirus stimulus fraud
The DoJ has charged David Staveley and David Butziger with conspiracy to make false statement to influence the Small Business Administration and conspiracy to commit bank fraud.
Feds arrest 2 men in first fraud case involving PPP loan program for small businesses hurt by coronavirus
Congress created the Paycheck Protection Program as part of the federal CARES Act to help small businesses recover from the COVID-19 pandemic.
www.usatoday.com
Two Charged in Rhode Island with Stimulus Fraud
Two businessmen have been charged in the District of Rhode Island with allegedly filing bank loan applications fraudulently seeking more than a half-million dollars in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security...
No mug shots so you KNOW they are both CACs
Two businessmen have been accused of fraudulently seeking more than half a million dollars in forgivable loans under the Paycheck Protection Program - the $669 billion relief program introduced by Congress in March to support small businesses struggling in the midst of the coronavirus pandemic.
On Tuesday, the Department of Justice charged David Staveley, 52, and David Butziger, 51, with conspiracy to make false statements to influence the Small Business Administration and conspiracy to commit bank fraud.
They are the first people to be charged with making phony applications for loans under the PPP - but investigators say there are likely to be more in the coming months.
The two men allegedly claimed they needed to pay employees at businesses affected by the COVID-19 crisis, when in reality their businesses were not operating before the pandemic began and had no employees on the payroll.
'Every dollar stolen from the Paycheck Protection Program comes at the expense of employees and small business owners who are working hard to make it through these difficult times,' Assistant Attorney General Brian A. Benczkowski said in a statement released by the DOJ Tuesday.
The duo's alleged crimes were additionally described in the statement as 'reprehensible'.
Authorities say that Staveley, who hails from Andover, Massachusetts, filed loan applications for more than $438,500, claiming that he needed to pay dozens of employees at three restaurants he owned.
However, two of the restaurants weren't open before the pandemic began and he didn't have any connection to the third restaurant he claimed to have owned, authorities said.
Meanwhile, Butziger, of Warwick, Rhode Island, sought a $105,381 loan under the PPP.
He claimed he had seven full-time employees to pay at a business he owned called Dock Wireless.
However, the state of Rhode Island has no record of Butziger paying employees this year and several supposed employees interviewed by agents said they never worked for him or Dock Wireless.
In the DOJ statement announcing the charges, Rhode Island U.S. Attorney Aaron Weisman stated: 'Tens of millions of Americans have lost their jobs and have had their lives thrown into chaos because of the coronavirus pandemic.
'It is unconscionable that anyone would attempt to steal from a program intended to help hard working Americans continue to be paid so they can feed their families and pay some of their bills.'
The Paycheck Protection Program was introduced to help protect jobs amid the COVID-19 crisis, and allows small businesses to apply for low-interest loans of up to $10 million.
The loan proceeds may be used to cover the business' payroll costs, rent, interest, and utilities. The loan may be partially or fully forgiven if the business keeps its employee counts and employee wages stable.
Assistant Attorney General Brian A. Benczkowski told USA Today that he does not believe Staveley and Butzinger are the only people who have filed false claims.
'What we see coming out of Rhode Island is what’s happening across the country. We have a lot of leads,' he stated.