Ex-Conventry Man Used Covid Loans to Buy Vermont Home

A former Connecticut resident and current Coventry, Vermont resident, EDWARD MUNDAY, has been caught with his hands in the cookie jar, using a Covid-relief loan to buy a second home in Vermont, according to federal authorities.

Munday, a former resident of New Fairfield, Connecticut, applied for and received a substantial Economic Injury Disaster Loan (EIDL) under the Coronavirus Aid, Relief and Economic Security (CARES) Act to help his IT consulting business, EDM Services, recover from the effects of the Covid-19 pandemic. Instead of using the loan to alleviate economic injury, Munday allegedly used a substantial portion of it to purchase the second home in Vermont.

The CARES Act, enacted in 2020, provided emergency assistance to individuals, families, and businesses affected by the Covid-19 pandemic. Section 1110 of the act authorized the Small Business Administration to provide EIDLs to eligible small businesses, including sole proprietors, to meet operating expenses.

Munday applied for and received an EIDL Loan as sole proprietor for EDM Services on May 25, 2020. He later sought and received an increase in his EIDL Loan for EDM Services in May 2021. In both cases, Munday agreed to use all the proceeds of the loan as working capital to alleviate economic injury caused by Covid-19.

However, federal authorities contend that Munday did not use all the proceeds of the EIDL as working capital for EDM Services. Instead, he used a substantial portion of it to purchase the second home in Vermont. To resolve these allegations, Munday agreed to pay $104,200 in restitution and a $50,000 penalty.

The investigation was conducted by the Federal Bureau of Investigation, with the assistance of the Small Business Administration’s Office of General Counsel. Assistant U.S. Attorneys Sarah Gruber and Richard M. Molot handled the matter. Individuals with information about allegations of attempted fraud involving Covid-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The resolution of these allegations serves as a reminder that federal authorities are cracking down on those who attempt to exploit the system for personal gain. It also highlights the importance of transparency and accountability in the use of Covid-relief funds. As we continue to navigate the aftermath of the pandemic, it is essential that we hold individuals and businesses accountable for their actions.