Two men have been charged in the District of Rhode Island with allegedly filing bank loan applications fraudulently seeking more than half a million dollars in loans from the Paycheck Protection Program.
David A. Staveley, aka Kurt D. Sanborn, of Andover, Massachusetts, and David Butziger of Warwick, Rhode Island, are charged with seeking the loans, claiming to have dozens of employees earning wages at four different business entities when, in fact, there were no employees working for any of the businesses. They are the first people to be accused of fraud under the program, according to a statement from the Department of Justice.
“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,” said U.S. Attorney Aaron L. Weisman for the District of Rhode Island, in a statement. “Attorney General Barr has directed all U.S. Attorneys to prioritize the investigation and prosecution of crimes related to coronavirus and COVID-19, and we are doing just that.”
Related: SBA Releases Updated Guidance on Business Loan Program; Possible Fraud Discovered in Small Business Loan Lending Program.
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