NORFOLK, Va. (WAVY) — A Virginia Beach businessman will serve a two-year sentence is prison for a fraud scheme after he used a Paycheck Protection Program loan for his own benefit during the coronavirus pandemic.
Scott Suber, 39, was sentenced for bank fraud Thursday in federal court in Norfolk, according to a U.S. Department of Justice news release.
Authorities said Suber submitted the fraudulent application for a Paycheck Protection Program (PPP) loan and used the loan for a trip to Las Vegas, payments to non-business-related individuals, and more.
The PPP program was put in place by Congress to help businesses affected by the pandemic continue to pay their employees.
According to the release, Suber falsely stated on his program application that his business , Debris or Not Debris Property Preservation, Inc., had eight employees and an average monthly payroll of $140,000.
As part of the scheme, a false Form 941 (Employer’s Quarterly Federal Tax Return) was submitted, claiming the business had quarterly wages of $420,000 and federal tax withholding of $36,620.
Investigators said these figures were completely false and fabricated.
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.