NYC Financial commitment Manager Accused of Thieving Hundreds of thousands By PPP Financial loans
2 min read- New York Metropolis prosecutors billed a male with thieving above $2.4 million by way of PPP financial loans.
- The guy is accused of making use of for 5 PPP loans and lying about the range of workforce he had.
- Prosecutors alleged he transferred the “huge greater part” of the revenue to personal buying and selling accounts.
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A New York Metropolis investment decision manager was billed Friday with stealing more than $2.4 million from 5 lending establishments by way of Payment Security System loans, prosecutors mentioned in a statement.
Gregory Blotnick, 33, is accused of implementing for five individual PPP loans involving April 2020 and August 2020, and lying about the number of employees he experienced at his providers, Brattle Street Capital LLC and BSC Administration LLC.
Whilst the financial loans were meant to address payroll expenses, prosecutors accused Blotnick of instead transferring a “extensive vast majority” of the funds to his personalized buying and selling accounts and dropping it in the current market.
“As alleged, Mr. Blotnick frequently took edge of a system intended to supply lifelines to compact businesses and their workers in the course of the height of the COVID-19 pandemic,” Manhattan District Lawyer Cyrus Vance reported in a statement.
Blotnick has been billed with 5 counts of 2nd-degree grand larceny, 5 counts of next-degree prison possession of stolen residence, and 1 count of to start with-degree scheme to defraud.
“At a time when approximately 3,000 firms had been forced to shut their doors across New York Town, Mr. Blotnick diverted tens of millions in critical PPP cash for his have individual gain,” Vance’s statement claimed.
It can be unclear no matter if Blotnick has entered a plea. Insider could not instantly find an legal professional for Blotnick, and his Linkedin website page seems to have been taken down. Insider also could not quickly track down representatives for Blotnick’s firms.
