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Man sentenced in COVID-19 relief business loan fraud case

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A person who faked suicide and went on the run to keep away from prosecution for fraudulently looking for a whole bunch of hundreds of {dollars} in coronavirus pandemic reduction loans meant for struggling small companies was sentenced Thursday to just about 5 years in jail.

David Staveley, 54, of Andover, Massachusetts, and an confederate have been the primary individuals within the nation accused of fraudulently looking for Paycheck Safety Program loans after they have been first charged in Might 2020, the U.S. legal professional’s workplace in Rhode Island mentioned in an announcement.

Staveley — who additionally goes by Kurt David Sanborn or David Sanborn — and David Andrew Butziger, 53, of Warwick, Rhode Island, filed 4 fraudulent mortgage purposes with a Rhode Island financial institution, claiming they owned companies with giant month-to-month payrolls, prosecutors mentioned.

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Mixed, they sought almost $550,000 in loans for 2 Warwick, Rhode Island, eating places and a 3rd restaurant in Berlin, Massachusetts, in addition to a wi-fi firm.

Staveley had no possession curiosity within the eating places, which have been closed on the time the mortgage purposes have been submitted, prosecutors mentioned. The wi-fi firm had no workers and no wages have been ever paid by the enterprise, prosecutors mentioned.

Staveley initially pleaded not responsible in Might 2020 and was launched to dwelling confinement, however he eliminated his GPS monitor and fled, in keeping with a earlier assertion from the U.S. Marshals Service.

His car was discovered close to a seashore in Quincy, Massachusetts, unlocked with the important thing within the ignition, and his pockets, bank cards and driver’s license inside. He additionally instructed associates he was going to kill himself, authorities mentioned.

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However no proof was discovered that he had taken his personal life, and marshals concluded that Staveley faked his dying.

Utilizing false identities and stolen license plates, he traveled to a number of states earlier than authorities caught up with him in Alpharetta, Georgia, on July 23, 2020, prosecutors mentioned.

On the time of his arrest, he had a number of types of identification bearing completely different names, authorities mentioned.

Staveley pleaded responsible in Might 2021 to conspiring to commit financial institution fraud and failure to seem in courtroom.

Butziger, who pleaded responsible in September 2020 to conspiracy to commit financial institution fraud, is scheduled to be sentenced on Nov. 1.

 

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