Scott Suber, Bank Fraud, Virginia 2023

A Virginia Beach businessman was sentenced to two years in prison for bank fraud related to a COVID-19 relief program. Scott Suber, 39, submitted a fraudulent application for a Paycheck Protection Program (PPP) loan in June 2020.

The application, submitted to Celtic Bank, falsely represented that Suber’s business, Debris or Not Debris Property Preservation, Inc., had eight employees and an average monthly payroll of $140,000. In support of the application, Suber submitted a false quarterly tax return claiming that the business had quarterly wages of $420,000 and federal tax withholdings of $36,620.

Celtic Bank approved and funded a PPP loan for the business in the amount of $350,000 and transferred the funds to an account Suber maintained in the name of his company. The loan application stated that Suber’s company would use the loan proceeds for business-related purposes, such as the costs of payroll, lease, and utilities.

Instead, Suber used the proceeds for his own personal benefit, including making large cash withdrawals, traveling to Las Vegas, and making non-business-related payments to several individuals.

The defendant’s scheme wasted taxpayer dollars and kept vital assistance from reaching those who are in genuine need of these funds, said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia.

Suber, of Virginia Beach, was sentenced by U.S. District Judge Robert G. Doumar. The case was prosecuted by Assistant U.S. Attorney Alan M. Salsbury.

Suber’s business, Debris or Not Debris Property Preservation, Inc., was not a legitimate business and did not have any employees.

The Paycheck Protection Program was designed to help businesses affected by the COVID-19 pandemic continue to pay salary or wages to their employees.

Suber’s scheme is a prime example of the type of abuse that can occur in the COVID-19 relief programs, and it highlights the need for vigilance and oversight to prevent these types of abuses.

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