First COVID fund fee for guy who faked suicide sentenced
A Massachusetts guy who tried to rip-off the federal government out of greater than part one million greenbacks in coronavirus aid finances meant to helpsmall companies keep afloat, then faked his personal suicide, used to be sentenced to 56 months in jail, federal prosecutors mentioned.
David Staveley, 54, of Andover, used to be the primary guy within the U.S. chargedfor COVIDbusiness mortgage fraudwhen he used to be arrested, theDepartment of Justice introduced Thursday.
Staveley and his companion, David Butziger, 53, of Rhode Island,claimed to have dozens of staff incomes wages at 4 other companies. Butthey didn’t personal the companies and there have been no staff operating for them, prosecutors mentioned. The pair submitted programs for almost $543,7778 in finances in a while after the small trade mortgage program used to be introduced.
“This was a get rich and make an easy buck scheme, U.S. District Court Judge Mary S. McElroy said.
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Staveley andButziger were the first people in the nation to be charged with trying to defraud the CARES Act SBA Paycheck Protection Program.No money was released to the men, according to authorities.
After being charged with the fraud and released on house arrest in May2020, 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 fake identities and stolen license plates to travel to different states. He was finally taken back into custody in Georgia in late July, 2020, after the U.S. Marshals launched a fugitive investigation.
Staveley and his mother both pleaded with the judge for leniency, claiming Staveley hasdeveloping debilitating PTSD after being assaulted during a previous stint in federal prison. His lawyer argued that he has suffered in self-isolation for the past 14 months.
He previously served 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 set to be sentenced Nov. 1.
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The Paycheck Protection Program was designed for small businesses to weather the storm of the pandemic, with forgivable loans that could be used to save jobs. A report out of theUniversity of Texas, Austinidentified more than 1.8 million loans with indications of potential fraud by borrowers,representing about $76 billion.
One Southern California guy used to be arrested in May of this 12 months after federal government saidhefraudulently acquired tens of millions of dollarsin coronavirus aid finances to shop for sumptuous vehicles, take lavish holidays and canopy private bills. A Florida guy used to be charged with the usage of the tens of millions in fraudulent PPP finances he won topurchase a seven-bedroom mansion.
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