NORFOLK, Va. (WAVY) – A Virginia Beach man pleaded guilty on Wednesday to bank fraud after submitting a fraudulent loan application.
Court documents say Scott Suber, 39, submitted the fraudulent application for a Paycheck Protection Program (PPP) loan and used the loan for a trip to Las Vegas, among other things.
The PPP is a program put in place by Congress to help businesses affected by the pandemic continue to pay their employees.
In the application, investigators say it was falsely stated that Suber’s business, Debris or Not Debris Property Preservation, Inc., had eight employees and an average monthly payroll of $140,000.
In support of the fraudulent application, court documents show a false Form 941 (Employer’s Quarterly Federal Tax Return) was also submitted. The form claimed the business had quarterly wages of $420,000 and federal tax withholding of $36,620.
Investigators say these figures were completely false and fabricated. In addition, court documents reveal Suber also submitted a bank statement with an altered date in support of the application.
Suber’s PPP loan was approved by the bank he submitted it to for $350,000 and transferred the funds to an account Suber had in the name of Debris or Not Debris Property Preservation, Inc. at Wells Fargo Bank, court documents say.
In the loan application, it was said that Debris or Not Debris Property Preservation, Inc. would use the loan for costs of payroll, lease, and utilities.
Instead, investigators say Suber used the proceeds for making large cash withdrawals, a trip to Las Vegas, and making non-business related payments to a number of individuals.
Suber is scheduled to be sentenced on May 4. He faces a maximum penalty of 30 years in prison.
Stay with WAVY.com for updates.
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