May 20, 2024

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Man Sentenced in COVID-19 Relief Business Loan Fraud Case

A gentleman who faked suicide and went on the run to stay clear of prosecution for fraudulently in search of hundreds of countless numbers of pounds in coronavirus pandemic relief loans intended for having difficulties compact businesses was sentenced Thursday to approximately 5 decades in jail. Barstool Sports activities founder Dave Portnoy introduced a fundraising effort with the nonprofit 30 Working day Fund for tiny companies impacted by COVID-19 known as “The Barstool Fund, contributing $500,000 of his very own funds towards the energy.

Staveley — who also goes by Kurt David Sanborn or David Sanborn — and David Andrew Butziger, 53, of Warwick, Rhode Island, filed four fraudulent bank loan apps with a Rhode Island lender, professing they owned corporations with big month-to-month payrolls, prosecutors mentioned.

David Staveley, 54, of Andover, Massachusetts, and an accomplice were the very first people in the country accused of fraudulently trying to get Paycheck Safety System loans when they ended up to start with charged in Might 2020, the U.S. attorney’s office in Rhode Island explained in a statement.

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Blended, they sought nearly $550,000 in loans for two Warwick, Rhode Island, places to eat and a third restaurant in Berlin, Massachusetts, as effectively as a wireless business.

Staveley experienced no ownership desire in the dining places, which ended up closed at the time the mortgage programs have been submitted, prosecutors said. The wireless organization experienced no employees and no wages ended up at any time compensated by the business, prosecutors mentioned.

Staveley originally pleaded not responsible in Could 2020 and was released to household confinement, but he taken out his GPS keep track of and fled, in accordance to a previous statement from the U.S. Marshals Support.

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His car or truck was discovered around a seashore in Quincy, Massachusetts, unlocked with the crucial in the ignition, and his wallet, credit cards and driver’s license within. He also instructed associates he was heading to eliminate himself, authorities reported.

But no evidence was discovered that he experienced taken his own life, and marshals concluded that Staveley faked his loss of life.

Employing wrong identities and stolen license plates, he traveled to many states prior to authorities caught up with him in Alpharetta, Ga, on July 23, 2020, prosecutors reported.

At the time of his arrest, he had many kinds of identification bearing unique names, authorities said.

Staveley pleaded responsible in May well 2021 to conspiring to commit lender fraud and failure to seem in courtroom.

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

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