Burr & Forman

05.6.2020   |   Blog Articles, Securities Litigation

US DOJ Files First Criminal Action for PPP Loan Fraud

The United States Department of Justice (“DOJ”) has filed the first criminal action for fraud in connection with PPP loans.  Documents unsealed May 5 in the United States District Court for the District of Rhode Island accuse David A. Staveley, aka Kurt D. Sanborn, 52, of Andover, Massachusetts, and David Butziger, 51, of Warwick, Rhode Island, of seeking over $500,000 in PPP loans for four businesses that they did not own, or were closed prior to the pandemic.

The criminal complaint charges both men with conspiracy to make false statements to influence the SBA and conspiracy to commit bank fraud.  Additionally, Staveley is charged with aggravated identity theft and Butziger with bank fraud.

DOJ’s Press Release 20-429 is here.

United States v. Butziger, No. 1:20-mj-00033 (USDC D. R.I. May 4, 2020) is here.

United States v. Staveley, No. 1:20-mj-00034 (USDC D. R.I. May 4, 2020) is here.

Thomas K. Potter, III (tpotter@burr.com) is a partner in the Securities Litigation Practice Group at Burr & Forman, LLP. Tom is licensed in Tennessee, Texas, and Louisiana. He has over 34 years of experience representing financial institutions in litigation, regulatory, and compliance matters. See attorney profile.

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