Florida Man Pleads Guilty to PPP Loan Fraud
A Florida man has pleaded guilty to fraudulently obtaining and laundering more than $4.6 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief and Economic Security Act.
Gregory J. Blotnick, 34, of West Palm Beach and formerly of New York City, submitted 21 fraudulent PPP loan applications to 13 lenders on behalf of at least nine purported businesses that Blotnick controlled.
Blotnick falsified various information, including the number of his employees, the federal tax returns for his businesses, and payroll documentation. He sought more than $6.8 million in total PPP loans and obtained more than $4.6 million.
After obtaining the loan proceeds, Blotnick laundered and misused the funds, including by transferring them to brokerage accounts that he controlled from which he placed more than $3 million in losing stock trades.
Blotnick pleaded guilty to one count of wire fraud and one count of money laundering. He is scheduled to be sentenced on March 1, 2022, and faces a maximum total penalty of 30 years in prison.
The case was investigated by the FHFA-OIG, SSA-OIG, FDIC-OIG, and IRS-CI. Trial Attorney Cory E. Jacobs of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office for the District of New Jersey are prosecuting the case.
Since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases, seizing more than $65 million in cash proceeds derived from fraudulently obtained PPP funds.
Key Facts
- State: Florida
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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