Stefano Maroni, the owner of GMI USA Corp. and Belovefine, Ltd., has agreed to pay $1,470,085.65 to settle a civil fraud lawsuit filed by the United States Attorney for the Southern District of New York and the Small Business Administration’s Office of Inspector General. The lawsuit alleged that Maroni included false information in applications for Paycheck Protection Program loans that he submitted on behalf of his two companies.
The settlement resolves claims that Maroni improperly obtained separate first-draw and second-draw PPP loans for GMI and Belovefine, when the two entities in fact operated essentially the same footwear design and importation business during the relevant timeframe, using a single office space and sharing the same employees.
Under the settlement agreement approved by U.S. District Judge Jennifer H. Rearden on December 9, 2024, Maroni will pay the U.S. $1,470,085.65 and has agreed to the entry of a consent judgment in that amount. As part of the settlement, Maroni admitted and accepted responsibility for certain conduct alleged in the Government’s Complaint, including that he misrepresented and inflated the total payroll and employee headcounts in Belovefine’s and GMI’s first and second-draw PPP applications and loan forgiveness applications, which increased the amount of the PPP loans received and the amounts forgiven.
The Paycheck Protection Program was an emergency loan program established by Congress in March 2020 under the Coronavirus Aid, Relief and Economic Security Act and administered by the SBA. The PPP was created to provide forgivable loans to support small businesses struggling to pay employees and other business expenses during the COVID-19 pandemic.
Belovefine and GMI are no longer doing business or in operation.
“Stefano Maroni submitted false information and false certifications to receive Paycheck Protection Program loans to which he and his businesses were not entitled. PPP loans were intended to help small businesses stay afloat and retain their employees during the COVID-19 pandemic. This Office will continue its efforts to root out fraud and misconduct in the PPP and other pandemic-related assistance programs and hold those responsible accountable,” said U.S. Attorney Damian Williams.
According to the Complaint, Belovefine and GMI operated essentially the same footwear business from the same office space in Manhattan. At various times, Maroni alternately used Belovefine or GMI as the corporate entity performing certain business functions. During the relevant period, Maroni repeatedly transferred employees of the footwear business from one company to the other.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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