Randy Frasinelli, $3.8 Million PPP Fraud, Pennsylvania 2024

A Pittsburgh man has been sentenced to 78 months in prison for his role in a $3.8 million Paycheck Protection Program (PPP) fraud scheme, according to the U.S. Attorney’s Office for the Western District of Pennsylvania.

Randy Frasinelli, 66, of Carnegie, was sentenced on March 12, 2024 by United States District Judge W. Scott Hardy for bank fraud and money laundering. In addition to his prison sentence, Frasinelli must also pay $3,885,082 in restitution.

According to the government, Frasinelli filed six fraudulent applications for PPP loans, claiming to have businesses with dozens of employees and hundreds of thousands of dollars in monthly payroll. After receiving the funds, Frasinelli spent the money on luxury items, including vehicles, a villa in Mexico, an African safari, firearms, works of art, precious metals, watches, and personal investments.

Before sentencing, Frasinelli submitted at least 13 forged character letters, purportedly from prominent individuals in politics, finance, business, technology, and charitable organizations, in an attempt to receive a more lenient sentence.

“The scope and magnitude of this defendant’s ongoing fraud and deception is enormous,” said Acting U.S. Attorney Troy Rivetti. “He lied in an effort to obtain pandemic relief funds while already facing charges of illegally taking federal money meant for businesses on the verge of collapse.”

Frasinelli was taken into the custody of the United States Marshals at the conclusion of the hearing.

Assistant United States Attorney Jeffrey R. Bengel prosecuted this case on behalf of the government.

Acting United States Attorney Rivetti commended the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation for the investigation leading to the successful prosecution of Frasinelli.

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