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Date: 05-23-2021
Case Style:
Case Number: 1:20-cr-00074-MSM-LDA
Judge: Mary S. McElroy
Court: United States District Court for the Northern District of Rhode Island (Providence County)
Plaintiff's Attorney: United States District Attorney’s Office
Defendant's Attorney:
Description: Providence, Rhode Island CARES Act Paycheck Protection Program (PPP) fraud charge lawyers represented Defendants.
David Adler Staveley, a/k/a Kurt David Sanborn, a/k/a David Sanborn, 54, of Andover, MA, admitted he conspired with David Andrew Butziger, 53, of Warwick, RI, to file four fraudulent PPP loan applications with a Rhode Island bank, falsely claiming they owned businesses with large monthly payrolls when, in fact, they did not own the businesses. Staveley admitted that he and Sanborn filed fraudulent loan applications seeking $185,570 to pay employees at Top of the Bay restaurant in Warwick, RI; $144,050 at Remington House Inn restaurant in Warwick, RI; $108,777 at On The Trax restaurant in Berlin, MA; and $105,381 for employees at Dock Wireless, an unincorporated business.
Defendant faked suicide shortly after he and a co-defendant became the first in the nation to be charged with fraudulently seeking hundreds of thousands of dollars in forgivable pandemic relief small business loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, pleaded guilty today to conspiring to commit bank fraud and failure to appear in court.
The CARES Act Paycheck Protection Program (PPP) allowed qualifying small businesses to receive forgivable or low interest loans to meet payroll costs and mortgage, rent, and utility payments.
Remington House Inn and On The Trax were closed at the time the loan applications were submitted, and remain closed; Staveley has no ownership interest in Top of the Bay; and Dock Wireless had no employees and no wages were ever paid by the business.
In May 2020, Staveley and Butziger became the first individuals in the nation charged with defrauding the CARES Act Paycheck Protection Program. Three weeks after appearing in federal court and being released to home detention with electronic monitoring, Staveley removed his electronic monitoring device and fled. Staveley staged his suicide by, among other things, leaving suicide notes with associates and in his car, which was located by the ocean in Massachusetts, unlocked and with his wallet inside. Law enforcement determined that between May 26 and July 23, 2020, Staveley, who was to have appeared in federal court on June 2, 2020, traveled to various states using false identities and stolen license plates. He was apprehended by the United States Marshals Service in Alpharetta, GA., on July 23, 2020.
Appearing today before U.S. District Court Judge Mary S. McElroy, Staveley pleaded guilty to conspiracy to commit bank fraud and failure to appear in court as required, announced Acting United States Attorney Richard B. Myrus. Staveley is scheduled to be sentenced on August 2, 2021.
Butziger pleaded guilty on September 18, 2020, to conspiracy to commit bank fraud. He is scheduled to be sentenced on June 23, 2021.
The cases are being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
Outcome: 05/17/2021 Minute Entry for proceedings held before District Judge Mary S. McElroy:Change of Plea Hearing as to David Staveley held on 5/17/2021, Plea entered by David Staveley (1) Guilty Count 1,7. Lee Vilker for Government.Jason Knight for Defendant. Defendant sworn. Defendant Defendant waives right to appear in person and consents to appear via video. Court verifies that the Defendant has reviewed the charges & plea agreement with his attorney. Court questions Defendant and reviews maximum penalties, sentencing guidelines, and constitutional rights. Government outlines the legal elements and facts of the case. Defendant agrees with Government's outline. Defendant pleads guilty to Counts 1 & 7. Defendant requests in person sentencing. Sentencing 8/2/2021 10:00 am in the JAR. Defendant remanded. Court adjourned.(Court Reporter Karen Wischnowsky in Courtroom Zoom Video at 10:40am.)(McGuire, Vickie) (Entered: 05/17/2021)
05/17/2021 NOTICE OF HEARING DEFENDANT REQUEST as to David Staveley. Sentencing set for 8/5/2021 at 10:00 AM in Jury Assembly before District Judge Mary S. McElroy. Please Note: Date & time has changed. (McGuire, Vickie) (Entered: 05/17/2021)
Plaintiff's Experts:
Defendant's Experts:
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