NY Restauranteur Sentenced to Nearly 5 Years for PPP Fraud

A New York federal judge recently sentenced a restauranteur to nearly five years for PPP Fraud, following his guilty plea last November.

In 2020, the restauranteur was originally indicted on eleven counts. However, in a superseding indictment, the counts were reduced to conspiracy to commit bank fraud and interstate threats. The United States alleged that the restauranteur submitted multiple, fraudulent applications for PPP loans.  Specifically, the United States alleged that he submitted fake tax documents for a restaurant that was not in operation, claiming to employ more than 30 workers who collectively earned $500,000 a year.  For another restaurant, the United States alleged that he doctored tax documents inflating the scale of business at that location.  As a result, he received approximately $1.5 million in PPP loans, which he used to invest in real estate and purchase luxury items.

The restauranteur pled guilty to those two counts, and the judge sentenced him to 30 months for the bank fraud conspiracy and another 27 months for making interstate threats.

The case is USA v. Iseni et at, 1:20-cr-00660-ALC-15 (S.D. N.Y).