Eastern District of Virginia | Virginia Beach Businessman Sentenced for COVID-Relief Fraud Scheme


NORFOLK, Va. – A Virginia Seashore man was sentenced in the present day to 2 years in jail for financial institution fraud by submitting a fraudulent software for a Paycheck Safety Program (PPP) mortgage, after which utilizing the mortgage proceeds for his personal private profit.

“The defendant used fraud and deception to take advantage of a crucial COVID-19 reduction program for his personal private achieve,” mentioned Raj Parekh, Performing U.S. Lawyer for the Jap District of Virginia. “Defrauding the Paycheck Safety Program wastes taxpayer {dollars} and retains very important help from reaching those that are in real want of those funds. EDVA will proceed bringing to justice those that search to illegally revenue from the pandemic.”

In keeping with court docket paperwork, in June 2020, Scott Suber, 39, submitted to Celtic Financial institution a fraudulent software for a mortgage beneath the PPP, a program designed to assist companies affected by the COVID-19 pandemic proceed to pay wage or wages to their workers. Within the software, it was falsely represented that Suber’s enterprise, Particles or Not Particles Property Preservation, Inc., had eight workers and a median month-to-month payroll of $140,000. In assist of the fraudulent software, Suber submitted a false quarterly tax return claiming that the enterprise had quarterly wages of $420,000 and federal tax withholdings of $36,620. As well as, Suber submitted a financial institution assertion with an altered date in assist of the appliance.

Celtic Financial institution permitted and funded a PPP mortgage for the enterprise within the quantity of $350,000 and transferred the funds to an account Suber maintained within the identify of his firm. The mortgage software said that Suber’s firm would use the mortgage proceeds for business-related functions, reminiscent of the prices of payroll, lease, and utilities. As an alternative, Suber used the proceeds for his personal private profit, together with making massive money withdrawals, touring to Las Vegas, and making non-business-related funds to a number of people.

Raj Parekh, Performing U.S. Lawyer for the Jap District of Virginia; Darrell J. Waldon, Performing Particular Agent in Cost, Washington, D.C. Area Workplace, IRS-Prison Investigation (IRS-CI); Amaleka McCall-Brathwaite, Particular Agent in Cost of the Small Enterprise Administration (SBA) Workplace of Inspector Common, Jap Area; and Brian Dugan, Particular Agent in Cost of the FBI’s Norfolk Area Workplace, made the announcement after sentencing by U.S. District Decide Robert G. Doumar.

Assistant U.S. Lawyer Alan M. Salsbury prosecuted the case.

A replica of this press launch is positioned on the web site of the U.S. Attorney’s Office for the Jap District of Virginia. Associated court docket paperwork and data are positioned on the web site of the District Court for the Jap District of Virginia or on PACER by trying to find Case No. 2:20-cr-110.

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