VIRGINIA BEACH, Va. – A Virginia Seashore enterprise proprietor is dealing with federal costs for taking COVID-19 aid cash and spending it on himself when it was supposed for use for enterprise.
39-year-old Scott Suber from Virginia Seashore is dealing with one depend of financial institution fraud.
He owns the enterprise Particles or Not Particles Property Preservation Inc.
His lawyer, Scott Hallauer stated Suber admits to taking cash from the Paycheck Safety Program and misusing it.
He stated Suber put his belief into the improper folks when submitting out the mortgage utility, takes full duty for what occurred and plans to plead responsible within the Norfolk Federal Courthouse.
“I believe folks have been determined. I believe the federal government was speeding to get the cash out. I believe this specific utility ought to’ve by no means been accepted however folks have been struggling. Scott Suber is a brand new enterprise proprietor. I believe he was determined, and he put his belief within the improper folks and he made some unhealthy choices and he’s taking duty now for these choices, making an attempt to make it proper,” stated Hallauer.
The $350,000 {dollars} was given to him by the PPP help program was supposed for use for his payroll, lease, and utilities however as an alternative he’s accused of constructing giant money withdrawals and spending the cash on journey to Las Vegas, in line with information.
By means of this mortgage program, Congress awarded a whole lot of billions of {dollars} in forgivable loans to small companies, for the aim of serving to them by the pandemic.
Economics Professional and Professor at ODU Bob McNab stated it’s unclear how massive of downside fraud with the COVID-19 aid funds lengthen, however stated we are going to see extra folks dealing with costs if the Division of Justice places extra sources into investigating the difficulty.
“We simply don’t know the true extent of the fraud however we do know that if you put a big pot of cash on the market, some folks simply can’t resist the temptation,” stated McNab.
He stated fraud takes cash from companies that want it.
“Sadly, when you could have very giant packages making an attempt to push some huge cash out the door in very fast vogue some persons are going to benefit from it,” stated McNab.
McNab stated issues with fraud will name for tighter restrictions sooner or later if extra mortgage cash is accepted to be given out.
“We have to stimulate the financial system to forestall additional tragedy in an financial system sense, but in addition to steward the funds to the very best of our skill to ensure the taxpayers are assured that the federal government is spending the funds to the very best of their skill,” stated McNab.
Related: Portsmouth business owner plans to plead guilty to healthcare fraud charge
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