Florida Man Pleads Guilty To $4.6Mln Small Business Loan Fraud Scheme - US Justice Dept.

WASHINGTON (UrduPoint News / Sputnik - 14th October, 2021) A resident of the US state of Florida has entered a guilty plea on Federal charges of fraudulently obtaining� and laundering more than $4.6 million in paycheck protection program loans, the Justice Department said on Wednesday.

"A 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 the Coronavirus Aid, Relief and Economic Security Act," the Justice Department 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 purported businesses that he controlled and then he laundered the loan proceeds through a series of illicit financial transactions, the release said.

"Blotnick sought more than $6.8 million in total PPP loans and obtained more than $4.6 million. Blotnick then laundered and misused the loan proceeds, including by transferring the funds to brokerage accounts that he controlled from which he placed more than $3 million in losing stock trades," the release added.

Blotnick pleaded guilty to one count of wire fraud and one count of money laundering. He is scheduled to be sentenced on March 1, 2022, and faces a maximum total penalty of 30 years in prison, according the release.