An Anchorage enterprise proprietor has agreed to pay almost $400,000 after fraudulently acquiring loans by way of a federal pandemic reduction program, federal prosecutors stated Friday.
Robert Gross, 65, submitted false data for six firms he owned to acquire loans and advances from the Financial Damage Catastrophe Mortgage program between April and September 2020, the U.S. Lawyer’s Workplace for the District of Alaska stated.
As a part of the civil settlement settlement, Gross should repay the excellent mortgage balances, plus curiosity, in addition to pay $242,990 in damages. Underneath a legal non-prosecution settlement, Gross additionally admitted to the making the false statements and agreed to phrases instead of a legal prosecution, federal prosecutors stated.
The agreements assist resolve a federal investigation into $164,000 in loans and advances that Gross obtained beneath the Coronavirus Assist, Reduction, and Financial Safety Act.
Congress handed the CARES Act on March 27, 2020. It contained provisions to help struggling small-business homeowners throughout occasions of financial hardship inflicted by the pandemic, and it added extra funds to the EIDL program.
“Throughout a world pandemic, the defendant took benefit of assist packages designed as a lifeline offering crucial reduction for hardworking folks in our communities impacted by COVID,” stated Bryan Wilson, appearing U.S. Lawyer for the District of Alaska, in an announcement.
The settlement settlement contends that Gross obtained the funding due to false claims he submitted and that he wouldn’t have in any other case obtained the cash.
Settlement paperwork outlined how Gross allegedly misrepresented income and falsely acknowledged what number of workers every of the businesses had in purposes for the funds.
“Making false statements to fraudulently achieve entry to SBA program funds is deplorable,” stated Weston Type, the Small Enterprise Administration Workplace of Inspector Basic’s Western Area particular agent in cost.
Neither Gross nor the lawyer listed for Gross within the settlement settlement might instantly be reached for remark Friday afternoon.
The settlement paperwork stated that in April 2020, Gross utilized to this system on behalf of the restricted legal responsibility firm Bistro IT for a $150,000 mortgage, saying the corporate hadn’t utilized for different federal funds beneath the CARES Act — which was not the case.
In April, Gross additionally submitted purposes for Glacier State Providers Inc., stating the company had one worker when in actuality the corporate hadn’t paid any wages and Gross was the worker, in response to the settlement paperwork. Gross additionally misrepresented the company’s income, settlement paperwork stated.
Three days after submitting the 2 purposes, Gross then submitted a mortgage software for RB Enterprises LLC, falsely saying the corporate had two workers “when it had paid no wages and Bob Gross and his partner have been the ‘workers,’ ” settlement paperwork stated.
In mid-April, Gross utilized to this system for Meritage Administration Firm LLC and obtained an advance of $2,000, however whereas the corporate had licensed there have been two workers, the workers have been really Gross and his co-owner and Meritage hadn’t paid out any wages, settlement paperwork stated.
Moreover, AK Denali Group LLC obtained a $1,000 mortgage and a $2,000 advance after Gross in April misrepresented income and acknowledged it had two workers when Gross and his partner have been the workers, in response to the settlement.
The settlement settlement stated 32 Mile Investments LLC additionally obtained a $2,000 advance after Gross in April falsely acknowledged what number of workers the corporate had and misrepresented its income in an software to the Financial Damage Catastrophe Mortgage program.
The settlement settlement was absolutely executed in early October 2021.