Little Valley Man Pleads Guilty in $1M PPP Fraud

Grimy Times Exclusive: In a shocking revelation from the Department of Justice, 44-year-old Adam Arena of Little Valley, NY, has been charged and pleaded guilty to conspiracy to commit bank fraud and engaging in monetary transactions with criminally derived proceeds. The charges stem from Arena’s fraudulent obtaining and laundering nearly $1 million in funds from the COVID-19 relief Paycheck Protection Program (PPP).

According to U.S. Attorney Trini E. Ross, Arena, alongside co-defendant Amanda J. Gloria, orchestrated a scheme that involved the submission of a fraudulent PPP loan application for ADA Auto Group, a business he had previously kept inactive since 2018. The duo claimed ADA Auto Group employed 50 people with an annual payroll exceeding $4.4 million, a claim entirely unfounded.

Senior U.S. District Judge William M. Skretny has set the maximum penalty for Arena at 30 years imprisonment and a fine of up to $1,000,000. Assistant U.S. Attorney Laura A. Higgins and Cory E. Jacobs have been handling this case and will be seeking justice against Arena.

The PPP was established under the CARES Act to aid small businesses during the pandemic. However, as highlighted by the Department of Justice’s Fraud Section, it has become a target for scammers. Since the passage of the CARES Act, more than 100 defendants have been prosecuted, with over $65 million in proceeds seized.

For those aware of any allegations of attempted fraud involving COVID-19 relief programs, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or file a complaint online via this link.

This case serves as a stark reminder of the lengths some will go to exploit federal relief programs during times of crisis. Stay tuned to Grimy Times for more updates on this story.

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