- New York City prosecutors charged a man with stealing more than $ 2.4 million through P3 loans.
- The man is accused of applying for five PPP loans and lying about the number of employees he had.
- Prosecutors alleged that he transferred the “vast majority” of the money to personal trading accounts.
A New York City investment manager was accused on Friday of stealing more than $ 2.4 million from five lending institutions through Payment Protection Program loans, prosecutors said in a statement. communicated.
Gregory Blotnick, 33, is accused of applying for five separate PPP loans between April 2020 and August 2020 and lying about the number of employees he had at his companies, Brattle Street Capital LLC and BSC Management LLC.
While the loans were intended to cover salary costs, prosecutors accused Blotnick of instead transferring a “vast majority” of the money to his personal trading accounts and losing it in the market.
“As alleged, Mr. Blotnick has repeatedly taken advantage of a system intended to provide lifelines for small businesses and their employees during the height of the COVID-19 pandemic,” Manhattan District Attorney said , Cyrus Vance, in a statement.
Blotnick has been charged with five counts of second degree robbery, five counts of second degree criminal possession of stolen property and one count of first degree conspiracy to defraud.
“At a time when nearly 3,000 businesses were forced to shut down across New York City, Mr. Blotnick embezzled millions of vital PPP funds for his own gain,” the Vance statement said.
It is not known if Blotnick pleaded. Insider was unable to immediately locate a lawyer for Blotnick, and his Linkedin page appears to have been taken down. Insider was also unable to immediately locate representatives for Blotnick’s companies.