CHARLOTTE, N.C. – Steven Andiloro, 53, of Mooresville, North Carolina, is facing a potential 40-year prison sentence after admitting today to running a brazen investment scam and pilfering over $2.6 million in COVID-19 relief funds. The U.S. Attorney’s Office for the Western District of North Carolina announced the guilty plea, detailing a scheme that preyed on investors and exploited a national crisis.
Between 2018 and 2021, Andiloro allegedly conned victims into handing over cash with promises of high returns on investments in both legitimate businesses and outright fabrications. Some were led to believe their money was funding his car service, while others were duped into thinking they were backing a non-existent marijuana dispensary. Instead of investing as promised, the feds say Andiloro siphoned the funds to fuel a lavish lifestyle and prop up his Ponzi scheme, paying earlier investors with money from new marks.
The greed didn’t stop there. From April 2020 to March 2021, Andiloro allegedly tapped into the Paycheck Protection Program (PPP), submitting bogus applications riddled with false financial information. He inflated revenues, costs, and payroll data to qualify for disaster relief loans intended for businesses crippled by the pandemic. The scheme netted him over $2.6 million in taxpayer dollars, which were then funneled into personal expenses and used to cover tracks of the underlying investment fraud.
The investigation, a joint effort by the U.S. Secret Service, the Federal Bureau of Investigation (FBI), and the Small Business Administration’s Office of Inspector General (SBA-OIG), peeled back layers of deceit. Special Agent in Charge Jason Byrnes of the Secret Service’s Charlotte Field Office and Special Agent in Charge Robert M. DeWitt of the FBI, along with Inspector General Hannibal “Mike” Ware, all contributed to the case. U.S. Attorney Dena J. King spearheaded the prosecution, promising to hold accountable those who exploit financial systems and disaster relief programs for personal gain.
Andiloro, currently released on bond, now faces a maximum sentence of 20 years in prison for the securities fraud charge and another 20 years for the wire fraud offense. A sentencing date has not yet been scheduled, leaving the door open for further revelations and potentially additional charges. The case is being prosecuted by Assistant U.S. Attorneys Graham Billings and Katherine Armstrong.
This case is part of the broader COVID-19 Fraud Enforcement Task Force, established by the Attorney General to combat pandemic-related fraud. The Department of Justice is actively pursuing criminal actors who preyed on the crisis, aiming to recover stolen funds and ensure accountability. Anyone with information regarding COVID-19 fraud is urged to contact the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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