A Warren County businessman has been sentenced to 36 months in prison for fraudulently obtaining nearly $1.8 million in federal COVID-19 emergency relief funds meant for distressed small businesses.
Rocco A. Malanga, 39, formerly of Hackettstown, New Jersey, pleaded guilty by videoconference on June 28, 2022, to one count of bank fraud and one count of money laundering.
Between April 2020 and August 2020, Malanga submitted false documentation to three lenders to obtain the fraudulent loans. He fabricated the number of employees employed by each business entity and their average monthly payroll before diverting some of the proceeds to fund a business that did not receive PPP loan funds.
In addition to the prison term, Judge Julien X. Neals sentenced Malanga to three years of supervised release and ordered $1.8 million in restitution and $1.8 million in forfeiture.
U.S. Attorney Philip R. Sellinger and Assistant Attorney General Kenneth A. Polite credited special agents of IRS – Criminal Investigation, the U.S. Postal Inspection Service, and other agencies with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Blake Coppotelli and Trial Attorney Della Sentilles.
The case is a stark reminder of the importance of accountability in the distribution of government relief funds.
Malanga’s sentence serves as a warning to those who would seek to exploit government programs for personal gain.
Rocco A. Malanga, the defendant/respondent, is a 39-year-old former businessman from Hackettstown, New Jersey.
The exact criminal charges against Malanga include one count of bank fraud and one count of money laundering.
The city and state are Newark, New Jersey.
The sentencing date was May 7, 2024.
The sentence or outcome was 36 months in prison, three years of supervised release, $1.8 million in restitution, and $1.8 million in forfeiture.
The dollar amounts involved in the case are $1.8 million in restitution and $1.8 million in forfeiture.
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Key Facts
- State: New Jersey
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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