A 34-year-old man admitted that he stole more than $ 4.6 million by fraudulently requesting and receiving money from the Paycheck Protection Program during the coronavirus pandemic.
Gregory J. Blotnick of Florida pleaded guilty Wednesday in Newark federal court to wire fraud and money laundering, the New Jersey U.S. Attorney’s Office said in a statement.
Blotnick applied for 21 loans from 13 different lenders between April 2020 and May 2021, and received $ 4,681,796 of the $ 6,889,089 it tried to obtain, according to court documents.
The small business forgivable loans were offered by the federal government to cover payroll expenses and cover mortgages, rents, and utilities for businesses.
After obtaining the money, Blotnick moved it to brokerage accounts and later lost $ 3 million in failed stock trades, prosecutors said.
The Blotnick companies were incorporated in Delaware with offices in New York City: one was called BSC Opportunistic and the other Brattle GP, according to the indictment documents. The court documents do not name the banks that were victimized, but noted that one is based in Utah and the other in New York City.
Blotnick, who also has a home in New York, faces a fine and years in prison when sentenced on March 1, 2022.
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You can reach Jeff Goldman at [email protected].