Staveley pleads guilty to PPP loan fraud
WARWICK, RI – An Andover man is the second in a duo charged with defrauding PPP loans to obtain more than half a million dollars in loans under the CARES Act, claiming that restaurant workers, including the Remington Inn and Top of the Bay in Warwick, plead guilty.
David Adler Staveley, a / k / a Kurt David Sanborn, a / k / a David Sanborn, 54, of Andover, MA, admitted to conspiring with David Andrew Butziger, 53, of Warwick, RI, to commit fraud loan officer, by filing four of the fraudulent PPP loan applications with a Rhode Island bank, mistakenly claiming that they owned businesses with large monthly payrolls when in fact they did not own the businesses. Staveley admitted that he and Sanborn filed fraudulent loan applications asking for $ 185,570 to pay employees at Top of the Bay restaurant in Warwick, RI; $ 144,050 at the Remington House Inn restaurant in Warwick, RI; $ 108,777 at On The Trax restaurant in Berlin, MA; and $ 105,381 for employees of Dock Wireless, an unincorporated business.
Remington House Inn and On The Trax were closed at the time loan applications were submitted and remain closed; Staveley has no stake in Top of the Bay; and Dock Wireless had no employees and no wages were ever paid by the company.
In May 2020, Staveley and Butziger became the first people in the country to be accused of defrauding the CARES Act paycheck protection program. Three weeks after appearing in federal court and being placed under electronic surveillance at home, Staveley removed his electronic surveillance device and fled. Staveley organized his suicide, among other things, leaving suicide notes with associates and in his car, which was located on the oceanfront in Massachusetts, unlocked and with his wallet inside. Law enforcement determined that between May 26 and July 23, 2020, Staveley, who was scheduled to appear in federal court on June 2, 2020, visited various states using false identities and license plates. stolen registration. He was apprehended by the United States Marshals Service in Alpharetta, GA on July 23, 2020.
Appearing before US District Court Judge Mary S. McElroy on Monday, Staveley pleaded guilty to conspiring to commit bank fraud and not appearing in court, acting US attorney Richard B. Myrus said. Staveley is expected to be sentenced on August 2, 2021.
Butziger pleaded guilty on September 18, 2020, to conspiring to commit bank fraud. He is expected to be sentenced on June 23, 2021.
The cases are being pursued by Assistant US Attorney Lee H. Vilker.
The case was reviewed by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.