PROVIDENCE – In May, two businessmen from Rhode Island and Massachusetts were named by federal prosecutors as the first in the country to be charged with attempting to fraudulently file for forgivable Paycheck Protection Program loans.
On Thursday, the Massachusetts man was indicted by a federal grand jury and the other, a Warwick resident, was said to have agreed to plead guilty. The U.S. Department of Justice alleges that the men sought to file for over $500,000 in loans.
David Adler Staveley of Andover, Mass., has been indicted by a federal grand jury on counts of bank fraud, conspiracy to commit bank fraud, false statements to the Small Business Administration, aggravated identity theft and failure to appear in court as required.
David Butzinger, of Warwick, has agreed to plead guilty to conspiracy to commit bank fraud, according to DOJ.
It was alleged that Staveley and Butzinger conspired to seek forgivable loans guaranteed by the SBA, claiming to have dozens of employees earning wages at four different businesses, including businesses in Rhode Island, despite having no employees at said businesses.
Staveley was also alleged to have faked his own death while out on bond by leaving suicide notes with associates and in his car, which he left unlocked and parked by the Atlantic Ocean. The DOJ also alleged that he traveled to various states using false identities and stolen license plates. Staveley was apprehended in Georgia in July.
The cases are being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
