WARWICK, RI — An Andover man, part of a duo charged with PPP fraud in seeking more than a half-million dollars in loans under the CARES Act , claiming employees at restaurants including the Remington Inn and Top of the Bay in Warwick, has been sentenced to 4.6 years in federal prison in the case.
Appearing Thursday before U.S. District Court Judge Mary S. McElroy, Staveley was sentenced to 56 months in federal prison to be followed by 3 years of federal supervised release.
David Adler Staveley, a/k/a Kurt David Sanborn, a/k/a David Sanborn, 54, of Andover, MA, admitted he conspired with David Andrew Butziger, 53, of Warwick, RI, commit PPP loan fraud, filing four fraudulent PPP loan applications with a Rhode Island bank, falsely claiming they owned businesses with large monthly payrolls when, in fact, they did not own the businesses. Staveley admitted that he and Sanborn filed fraudulent loan applications seeking $185,570 to pay employees at Top of the Bay restaurant in Warwick, RI; $144,050 at Remington House Inn restaurant in Warwick, RI; $108, 777 at On The Trax restaurant in Berlin, MA; and $105,381 for employees at Dock Wireless, an unincorporated business.
Remington House Inn and On The Trax were closed at the time the loan applications were submitted, and remain closed; Staveley has no ownership interest in Top of the Bay; and Dock Wireless had no employees and no wages were ever paid by the business.
In May 2020, Staveley and Butziger became the first individuals in the nation charged with defrauding the CARES Act Paycheck Protection Program. Three weeks after appearing in federal court and being released to home detention with electronic monitoring, Staveley removed his electronic monitoring device and fled. Staveley staged his suicide by, among other things, leaving suicide notes with associates and in his car, which was located by the ocean in Massachusetts, unlocked and with his wallet inside.
He was apprehended by the United States Marshals Service in Alpharetta, GA., on July 23, 2020.
This is a test