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Virginia Beach businessman sentenced for COVID-19 relief fraud scheme

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Posted at 2:07 PM, Jun 05, 2021
and last updated 2021-06-05 14:07:51-04

NORFOLK, Va. – A Virginia Beach man was sentenced to two years in prison for bank fraud by submitting a fraudulent application for a Paycheck Protection Program (PPP) loan, and then using the loan proceeds for his own personal benefit.

According to court documents, in June 2020, 39-year-old Scott Suber submitted a fraudulent application for a PPP loan, saying that his business, Debris or Not Debris Property Preservation, had eight employees and an average monthly payroll of $140,000. In support of the application, Suber submitted a false quarterly tax return claiming that the business had quarterly wages of $420,000 and federal tax withholdings of $36,620, and also submitted a bank statement with an altered date.

The loan was approved, and court documents say Suber used the $350,000 loan he was given to make large cash withdrawals, travel to Las Vegas and make non-business-related payments to several people.

“The defendant used fraud and deception to exploit a critical COVID-19 relief program for his own personal gain,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Defrauding the Paycheck Protection Program wastes taxpayer dollars and keeps vital assistance from reaching those who are in genuine need of these funds. EDVA will continue bringing to justice those who seek to illegally profit from the pandemic.”