Two Ohio Business Owners Sentenced to Prison for PPP Loan Fraud – Scioto Post

CLEVELAND – The owner of two companies in Solon and Highland Heights, Ohio, was sentenced on Friday, January 13, 2023, to 15 months in prison and ordered to pay $195,900.34 in restitution to Small Business Administration (SBA) by US District Judge Pamela A. Barker after he pleaded guilty to his role in a conspiracy to illegally obtain Payment Protection Program (“PPP”) loans.

According to court records, Deon D. Levy, 52, of Bedford, Ohio, was part of a larger nationwide scheme in which conspirators submitted fraudulent claims to the SBA. PPP, including proposals for Levy’s businesses in Solon and Highland Heights. Court records state that the loan applications submitted by Levy and other co-conspirators included false bank statements and tax returns, among other things, as well as the lie and fraud of the work and money of the loan companies, including the number of employees and the amount of money. monthly payment.

It was stated in the court documents that the request for loans for Levy’s business was given by the conspirators to James Richard Stote and Ross Charno. In return for their work on the proposal, Levy sent a kickback of approximately 25% of the approved PPP loan. As a result, Levy and the other co-defendants caused the SBA to issue two loans totaling $875,000 to accounts controlled by Levy.

James Richard Stote was sentenced to 10 years in prison, and Ross Charno was sentenced to 2 years in prison, for their role in the scheme to provide four plea bargains. Loans for over $35 million in PPP loans.

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