Business loan

Florida man pleads guilty to $ 4.6 million small business loan fraud program – US Justice Dept.


WASHINGTON (UrduPoint News / Sputnik – October 14, 2021) A resident of the US state of Florida has pleaded guilty to federal charges of fraudulently obtaining and laundering more than $ 4.6 million in protection program loans paychecks, the Justice Department said on Wednesday.

“Florida man pleaded guilty today in the District of New Jersey to fraudulently obtaining more than $ 4.6 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration under Coronavirus Aid , Relief and Economic Security Act, ”the Department of Justice said. in a press release.

According to court documents, Gregory Blotnick, 34, of West Palm Beach, submitted 21 fraudulent PPP loan applications to 13 lenders on behalf of at least nine alleged companies he controlled and then laundered the loan proceeds by through a series of illicit financial transactions, the release says.

“Blotnick requested over $ 6.8 million in PPP loans in total and secured over $ 4.6 million. Blotnick then laundered and misused the loan proceeds, including transferring the funds to brokerage accounts he controlled from which he placed more than $ 3 million in losing stock trades, “the statement added.

Blotnick pleaded guilty to one count of wire fraud and one count of money laundering. He is expected to be sentenced on March 1, 2022 and faces a total maximum sentence of 30 years in prison, the statement said.