David Epstein, Wire Fraud, Maryland 2020

In a shocking turn of events, a Baltimore County businessman has been caught in a web of deceit, pleading guilty to wire fraud in a scheme that defrauded financial institutions out of over $1.3 million in COVID-19 relief funds.

David Epstein, age 46, of Owings Mills, Maryland, was charged with one count of wire fraud, relating to the submission of fraudulent CARES Act loan applications. Epstein, a businessman with a seemingly legitimate reputation, used his company, PEI Staffing, to obtain the funds, which were intended to help small businesses retain employees and stay afloat during the pandemic.

The CARES Act, a federal law enacted in March 2020, provided emergency financial assistance to Americans suffering from the economic effects of the COVID-19 pandemic. Epstein's scheme targeted the Paycheck Protection Program, administered through the Small Business Administration (SBA), as well as the Economic Injury Disaster Loan (EIDL) program.

Epstein's plea agreement reveals that he submitted a false and misleading PPP loan application in the name of PEI, seeking approximately $1,307,170 in PPP funds. The application contained false statements and omissions, including the number of employees, wages paid to employees, and the intended use of the funds.

According to the plea agreement, Epstein also submitted a fictitious February 2020 bank statement for a SunTrust bank, which was actually a bank statement of his other business, Stafquik. Epstein admitted to altering the bank statement for the purpose of submitting it in connection with PPP applications for PEI.

Epstein's scheme was uncovered when it was discovered that he had transferred the PPP loan proceeds to his personal bank accounts and used the funds for personal and unauthorized expenses. One day after receiving the PPP funds, Epstein made an ACH transfer in the amount of $110,356.48 to Mercedes-Benz Financial in connection with a payment for a 2019 Mercedes-Benz GT43C4 automobile.

Epstein's guilt plea is a major blow to the community, where residents were counting on the COVID-19 relief funds to help small businesses stay afloat. The case serves as a reminder of the importance of accountability and transparency in the use of public funds.

David Epstein, 46, of Owings Mills, Maryland, pleaded guilty to one count of wire fraud. The exact date of the crime is not specified, but Epstein's scheme occurred in the District of Maryland between May 2020 and February 2021. The outcome of the case is pending sentencing, which has not been scheduled yet. The total amount of COVID-19 relief funds defrauded is $1,307,170.

Source: https://www.justice.gov/usao-md/pr/baltimore-county-businessman-pleads-guilty-fraudulently-obtaining-more-13-million-covid