Connecticut News | – CT man admits to $100K in Covid fund fraud. He used it for a dog breeder, RV superstore and … – Hartford Courant

A Connecticut man has pleaded guilty to offenses related to his receipt of COVID-19 relief funds, according to federal authorities.

John Matava, 59, of Coventry, pleaded guilty before U.S. District Judge Kari A. Dooley in Bridgeport to one count of wire fraud affecting a financial institution, which carries a possible sentence of up to 30 years in prison, and to one count of making an illegal monetary transaction, which carries a possible sentence of up to 10 years in prison, according to federal authorities. Dooley scheduled sentencing for March 29.

Authorities, citing court documents and statements made in court, said that, in April 2020, Matava applied to Celtic Bank for a $100,000 PPP loan for J.M. Builders LLC.

The application submission included several false representations, including that J.M. Builders LLC had eight employees and an average monthly payroll of $40,000; that the monies would be used for payroll, lease, mortgage, interest and utilities; and that the business owner was not subject to pending formal criminal charges, federal authorities said in a statement. At the time of the PPP loan application, there were no records of payroll or employees with the Connecticut Department of Labor for J.M. Builders LLC, and Matava was subject to criminal charges in two pending cases related to arrests in 2017 and 2018.

Authorities said Celtic Bank on April 22, 2020 disbursed $100,000 to a bank account for J.M. Builders LLC on which Matava was the signatory.

The account was opened on April 21, 2020, and had a balance of $0 immediately prior to the loan funds being disbursed, authorities said in the statement. Then, between April 2020 and January 2021, Matava used the funds primarily for personal expenditures, including $3,498 to pay a dog breeder, $4,777 for payments to an RV superstore in Connecticut, and legal fees, including a $2,000 retainer, for four court cases in Rockville.

Matava again in 2021 sought $100,000 in additional PPP funds from Celtic Bank, and included with the application several additional false statements and fraudulent tax documents, according to federal authorities, noting Celtic Bank then denied the application.

Matava was arrested on January 7, 2023. Following his plea, Matava is free on $60,000 bond, but is in home detention, pending sentencing, according to federal authorities.

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation.

Authorities also noted (shared here as presented by the U.S. Attorneys Office):

Individuals with information about allegations of fraud involving COVID-19 are encouraged to report it by calling the Department of Justices National Center for Disaster Fraud Hotline at 866-720-5721, or the NCDF Web Complaint Form at:https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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Connecticut News | - CT man admits to $100K in Covid fund fraud. He used it for a dog breeder, RV superstore and ... - Hartford Courant