Vermont Man Busted for $154k COVID-Relief Loan Scam

Edward Munday, a 43-year-old former New Fairfield, Connecticut resident now living in Coventry, Vermont, has forked over $154,200 to settle allegations that he used a COVID-19 relief loan to buy a second home.

Munday, who owned EDM Services, a small IT consulting business, applied for and received an Economic Injury Disaster Loan (EIDL) in May 2020, and later received an increase in the loan in May 2021. However, the government contends that Munday didn’t use the loan proceeds as intended, but instead used a substantial portion of it to purchase a second home in Vermont.

The CARES Act, which aimed to provide emergency assistance to individuals, families, and businesses affected by the COVID-19 pandemic, authorized the Small Business Administration to provide EIDLs to help small businesses overcome the effects of the pandemic. However, Munday allegedly breached this agreement by using the loan for personal gain.

The investigation was conducted by the Federal Bureau of Investigation, with the assistance of the SBA’s Office of General Counsel. Assistant U.S. Attorneys Sarah Gruber and Richard M. Molot handled the case.

Munday agreed to pay $104,200 in restitution and a $50,000 penalty to settle the allegations. The government encourages individuals with information about COVID-19-related fraud to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via their online complaint form.

The government is taking these allegations seriously, and it’s clear that Munday’s actions were a blatant disregard for the purpose of the COVID-19 relief loans. By paying $154,200, Munday is facing the consequences of his actions and will likely serve as a warning to others who would attempt to exploit these programs for personal gain.

As the investigation into COVID-19-related fraud continues, it’s essential for individuals and businesses to remain vigilant and report any suspicious activity to the authorities. The Department of Justice is committed to holding accountable those who would seek to take advantage of these programs.

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