A Massachusetts man who allegedly conspired to seek more than $500,000 in forgivable loans through the Small Business Administration (SBA) Paycheck Protection Program (PPP) – and who reportedly faked his own death following charges and arraignment – has been indicted by a federal grand jury.
The Federal Deposit Insurance Corp. (FDIC) Office of Inspector General (OIG) said that David Adler Staveley (also known as Kurt David Sanborn, also known as David Sanborn), 53, of Andover, Mass., has been indicted on three counts of bank fraud and one count each of conspiracy to commit bank fraud, false statements to influence the SBA, aggravated identity theft, and failure to appear in court as required.
The FDIC OIG release Tuesday also said that according to an information and plea agreement filed with the court, alleged co-conspirator David Andrew Butziger, 52, of Warwick, R.I., has agreed to plead guilty to conspiracy to commit bank fraud.
Staveley and Butziger are alleged to have conspired to seek forgivable loans guaranteed by the SBA, claiming to have dozens of employees earning wages at four different business, three restaurants and an electronics business, entities when, in fact, there were no employees working for any of the businesses. Staveley is also alleged to have posed as his brother in real estate transactions.
The agency said Stavely had earlier failed to appear in federal court in Rhode Island and allegedly faked his own death after being charged and arraigned on fraud and conspiracy charges. He was reportedly on the run from late May to late July, when he was finally apprehended by U.S. marshals.
One Person Indicted, Second Person to Plead Guilty in COVID-19 Stimulus Fraud Investigation