How a Mooresville Businessman Conned the Government Out of $2.6 Million in COVID Funds; Scranton Man Indicted After Alleged COVID-19 Fraud, and other C-Virus related stories

By admin On Nov 22, 2024

How a Mooresville businessman conned the government out of $2.6 million in COVID funds:

A 53-year-old Mooresville man is facing prison time for organizing a multimillion-dollar investment scheme and fraudulently receiving more than $2.6 million in COVID relief funds.

Steven Andiloro pleaded guilty to securities fraud and wire fraud on Thursday in a Charlotte federal court, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Both crimes carry a maximum prison sentence of 20 years.

From 2018 to 2021, he ran an investment fraud scheme and persuaded victims to invest money in businesses that were both real and fake, according to the plea agreement and court records. He told victims that their money would be invested into his car service business and a non-existent marijuana dispensary.

But Andiloro did not keep his promise and used money from victims to pay for personal expenses and Ponzi-style payments to other investors, according to the U.S. Attorney’s Office.

Andiloro also used fraud to get money from the government’s Paycheck Protection Program. The PPP money from the Coronavirus Aid, Relief, and Economic Security Act of 2020 was intended to help businesses going through economic hardship during the pandemic.

From April 2020 to March 2021, he submitted false financial information like fake employment data, inflated revenues, costs and payroll expenses, according to court records. After receiving $2.6 million in PPP funds, Andiloro spent the money on his personal lifestyle and made payments towards his investment scheme.

Andiloro was released on bond. His sentencing date has not been set.

The COVID-19 Fraud Enforcement Task Force was established in May 2021 by the U.S. Attorney General’s Office to combat and prevent pandemic fraud with the assistance of government agencies. During the investigation of Andiloro, the U.S. Attorney’s Office was assisted by the U.S. Secret Service; the Federal Bureau of Investigation and the Small Business Administration’s Office of Inspector General. —>READ MORE HERE

Scranton man indicted after alleged COVID-19 fraud:

A Scranton man has been charged with fraud of $850,000 during the COVID-19 pandemic.

According to The United States Attorney’s Office for the Middle District of Pennsylvania, 42-year-old Yoel Weiss from Scranton was indicted on 41 counts of wire fraud, identity theft, unlawful cash transactions, witness tampering, and false statements to the Small Business Administration.

U.S. Attorney Gerard M. Karam stated Weiss allegedly filed at least seven fraudulent applications for pandemic stimulus funds through the Economic Injury and Disaster Loan Program.

The release explains the application allegedly submitted by Weiss was filed on behalf of corporate entities that did not have actual business operations and made false dates of business
establishment, false employee headcount information, fabricated gross revenues, costs of goods sold, and lost rental income.