Revolves Around Attempt To Secure $500K In PPP Loans
September 9, 2020
One man’s attempt to fake his own death failed to sway federal authorities. He has been indicted by a federal grand jury in Providence for seeking $500,000 in forgivable loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to the U.S. Department of Justice, David Adler Staveley, a/k/a Kurt David Sanborn, a/k/a David Sanborn, 53, of Andover, Massachusetts, has been indicted on three counts of bank fraud and one count each of conspiracy to commit bank fraud, false statements to influence the SBA, aggravated identity theft, and failure to appear in court as required
According to an information and plea agreement filed with the court, alleged co-conspirator David Andrew Butziger, 52, of Warwick Rhode Island, has agreed to plead guilty to conspiracy to commit bank fraud. A court date has not yet been scheduled.
The Justice Department alleges that Staveley and Butziger conspired to seek forgivable loans guaranteed by the SBA, claiming to have dozens of employees earning wages at four different business, three restaurants and an electronics business, entities when, in fact, there were no employees working for any of the businesses. Additionally, it is alleged that Staveley posed as his brother in real estate transactions.
It is alleged in the indictment that Staveley, following his arrest on May 5, 2020, and released by the court on unsecured bond with certain travel restrictions, violated the terms of pre-trial release when he traveled to Connecticut without the approval of the court or United States Probation. On May 11, 2020, the court ordered Staveley to home confinement with GPS monitoring. While awaiting a further court hearing on the pre-trial release violation, it is alleged that Staveley cut off his electronic monitoring bracelet and fled.
According to the indictment, in an effort to deceive law enforcement into believing that he had died, it is alleged that Staveley staged his suicide by, among other things, leaving suicide notes with associates and in his car, which he left unlocked and parked by the Atlantic Ocean. It is alleged that from May 26, 2020, to July 23, 2020, in an effort to avoid apprehension, Staveley traveled to various states using false identities and stolen license plates. He was apprehended by the United States Marshals Service in Alpharetta, Georgia on July 23, 2020.
The indictment of Staveley and the filing of an information and plea agreement in the case against Butziger are announced by United States Attorney Aaron L. Weisman, Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Field Office, and Acting Special Agent in Charge of Internal Revenue Service Criminal Investigation Joleen Simpson.
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