US Charges Hedge-Fund Manager With $3.8Mln COVID-19 Relief Fraud - Justice Dept.

WASHINGTON (UrduPoint News / Sputnik - 07th May, 2021) The owner of a New York City hedge-fund management firm faces multiple charges of wire fraud and money laundering for receiving nearly $4 million from the COVID-19 Paycheck Protection Program (PPP) using bogus applications, the US Justice Department said on Thursday.

"[Gregory] Blotnick submitted eight falsified loan applications to numerous lenders on behalf of five of Blotnick's businesses, including his New York City-based hedge fund management firm, Brattle Street Capital LLC and related entities," the Justice Department said in a press release.

To obtain the PPP loans, Blotnick submitted false information, including the number of his employees, Federal tax returns for his businesses, and his payroll documentation, and he certified that he would use the loan money only for business-related purposes, the release said.

Blotnick transferred the funds to brokerage accounts, losing more than $3 million in stock trades, the release added.

Blotnick is charged with eight counts of wire fraud and six counts of money laundering, with an initial court appearance scheduled May 19, according to the release.