Man convicted in a COVID-19 aid business loan fraud case


A man who faked suicide and was on the run to avoid prosecution for fraudulently seeking hundreds of thousands of dollars in coronavirus pandemic aid loans meant for troubled small businesses turned nearly five on Thursday Sentenced to years in prison.

David Staveley, 54, of Andover, Massachusetts, and an accomplice were the first people in the country alleged to have fraudulently asked for paycheck protection program loans in May 2020 when they were first indicted in May 2020, the US said – Rhode Island Attorney’s Office in a statement with.

Staveley – also known as Kurt David Sanborn or David Sanborn – and David Andrew Butziger, 53, of Warwick, Rhode Island, filed four fraudulent loan applications with a Rhode Island bank claiming they owned companies with large monthly payrolls, said Prosecutors.

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Together, they looked for nearly $ 550,000 in loans for two restaurants in Warwick, Rhode Island, and a third restaurant in Berlin, Massachusetts, and a cell phone company.

Staveley had no stake in the restaurants, which were closed at the time the loan applications were submitted, prosecutors said. The mobile phone company has no employees and the company has never paid wages, the prosecutor said.

Staveley originally pleaded not guilty and was released from home custody in May 2020, but he removed his GPS monitor and fled, according to an earlier statement by the US Marshals Service.

His vehicle was found near a beach in Quincy, Massachusetts. The authorities said that he had also told his employees that he would kill himself.

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However, no evidence was found that he had committed suicide, and the Marshals concluded that Staveley had faked his death.

Using false identities and stolen license plates, he traveled to several states before authorities caught up with him on July 23, 2020 in Alpharetta, Georgia, prosecutors said.

At the time of his arrest, he had several ID cards with different names, the authorities said.

Staveley pleaded guilty in May 2021 to conspiring to commit bank fraud and not to appear in court.

Butziger, who pleaded guilty to the bank fraud conspiracy in September 2020, is due to be sentenced on November 1.


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