VIRGINIA BEACH, Va. - A businessman plead guilty to Paycheck Protection Program (PPP) fraud after using loan proceeds for his own personal benefit.
According to a news release, court documents confirm that Scott Suber, 39, submitted a fraudulent PPP loan application to Celtic Bank. The loan program was instituted by Congress to provide relief for businesses affected by the COVID-19 pandemic.
Suber was approved for a $350,000 loan, and was to use the loan for business expenses like the costs of payroll, lease, and utilities. Instead, he used the funds to make large cash withdrawals and travel to Las Vegas, according to court documents.
Officials said that Suber submitted an application that falsely represented his business, Debris or Not Debris Property Preservation, Inc. According to the release, Suber falsely claimed he had eight employees and an average monthly payroll of $140,000.
Additionally, officials said he falsified a Form 941, claiming that the business had quarterly wages of $420,000 and federal tax withholding of $36,620. Suber also supported his application with a bank statement that had an altered date, according to the release.
Suber is scheduled to be sentenced on May 4, 2021, facing a maximum penalty of 30 years in prison.