Covid fraudster used pandemic rescue funds to buy alpaca farm

DU thread from 2021: Pizza place owner went on spending spree with $600K in ppp $: upgrade farm, vehicles, spa, alpacas

Also: Former North Shore Pizzeria Owner Sentenced to Two Years in Prison for COVID Fraud (U.S. Attorney's Office, District of Massachusetts)

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Source: BBC

Covid fraudster used pandemic rescue funds to buy alpaca farm

31 August 2023

By Max Matza
BBC News

A pizzeria owner from the Boston area has been convicted of using pandemic relief funds to buy an alpaca farm in Vermont and fund his radio programme.

Dana McIntyre, 59, was sentenced to two years for fraudulently accepting more than $660,000 (£520,000) in federal aid meant for struggling business owners.

In a statement, the FBI said he "capitalised on a national catastrophe" to steal from American taxpayers.

He pleaded guilty in April to wire fraud and money laundering.

"Make no mistake about it, this was no momentary lapse the in fog of the pandemic," said Acting United States Attorney Joshua S Levy, referring to the "multiple bogus applications for pandemic money" that McIntyre filed for on behalf of his children and his former pizzeria - Rasta Pasta Pizzeria in Beverly, Massachusetts.

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Read more: https://www.bbc.com/news/world-us-canada-66678562

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Source: U.S. Attorney's Office, District of Massachusetts

Former North Shore Pizzeria Owner Sentenced to Two Years in Prison for COVID Fraud

Wednesday, August 30, 2023
For Immediate Release
U.S. Attorney's Office, District of Massachusetts

Defendant purchased alpaca farm using fraudulently obtained pandemic relief funds

BOSTON – A former North Shore resident was sentenced today in connection with filing fraudulent applications for more than $660,000 in Paycheck Protection Program (PPP) loan funds and using those funds for personal expenses, including the purchase of an alpaca farm in Vermont.

Dana L. McIntyre, 59, of Grafton, Vt. and previously of Beverly and Essex, Mass., was sentenced by U.S. District Court Judge Denise J. Casper to two years in prison and three years of supervised release. McIntyre was also ordered to pay $679,156 in restitution and forfeiture. On April 13, 2023, McIntyre pleaded guilty to four counts of wire fraud and three counts of money laundering.

“Make no mistake about it, this was no momentary lapse in the fog of the pandemic. Mr. McIntyre submitted multiple bogus applications for pandemic money was supposed to provide a lifeline to small businesses and their employees during a national emergency. He stole from the American taxpayers and the many small businesses which truly needed those loans to survive,” said Acting United States Attorney Joshua S. Levy. “Just last month our office expanded the resources dedicated to investigating and prosecuting COVID fraud. Whether someone used stolen money to buy luxury goods or fancy cars or exotic farm animals, we intend to find them and hold them accountable.

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McIntyre is the former owner of Rasta Pasta Pizzeria in Beverly. In March 2020, McIntyre used the names of his adult children to submit two fraudulent applications to the U.S. Small Business Administration (SBA) for Economic Injury Disaster Loans (EIDL) for businesses that did not exist. Beginning in April 2020, McIntyre submitted an application and weekly certifications in order to receive Pandemic Unemployment Assistance (PUA) benefits. In these filings, McIntyre falsely claimed that he was not working or receiving income as a result of the pandemic, while McIntyre in fact was still operating the restaurant and paying himself income from the business. By September 2020, when McIntyre sold the restaurant, he had received over $17,000 in PUA and related benefits that he was not entitled to receive.

In April 2020, McIntyre submitted a fraudulent application for a PPP loan of over $660,000 through an SBA-approved lender. In the application, McIntyre inflated information about the pizzeria’s employees and payroll expenses and falsified an official tax form in an effort to qualify the business for a larger loan amount. After receiving a PPP loan of over $660,000, McIntyre sold the pizzeria and used nearly all the funds to purchase a farm in Vermont, as well as eight alpacas, and other personal expenses, including two vehicles and airtime for his crypto-currency themed radio show.

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Read more: https://www.justice.gov/usao-ma/pr/former-north-shore-pizzeria-owner-sentenced-two-years-prison-covid-fraud