DOJ Brings First Payroll Protection Program-Related Criminal Case
On May 5, the Justice Department filed charges in District Court against David A. Staveley and David Butziger in connection with loan applications made under the SBA’s Payroll Protection Program. DOJ alleges that their representations – that they would use over $500,000 to pay wages to dozens of employees – were fraudulent, because the four specified business were either not operating at the start of the coronavirus pandemic, did not have salaried workers, or had no affiliation with the two individuals seeking the loans. For example, one was a restaurant that closed in March with a revoked liquor license, even before stay-at-home orders went into effect.
