A Mooresville man is facing federal charges over claims that he fraudulently obtained more than $2.6 million in COVID relief funds, the U.S. Department of Justice said Thursday.
Investigators say he used the money to further defraud investors in a previous financial scheme involving fake businesses.
According to the indictment, from 2018 to 2021, Steven Andiloro, 51, convinced victims to invest their money in businesses, some of which were fake, by making “false and fraudulent representations about where and how the victims’ money would be invested.” The department did not disclose how much money was involved in the fraud.
One of the schemes involved a fake marijuana dispensary, where victims were promised a 10% ownership stake in exchange for an investment, according to the Justice Department.
From April 2020 to March 2022, Andiloro received funds from the Paycheck Protection Program by submitting fraudulent applications for loans intended for businesses that were struggling financially during the pandemic.
The applications included “fake employment data and inflated revenues, costs, and payroll expenses,” according to the Justice Department.
Andiloro allegedly used the money from the investment fraud and COVID relief funds to fund his personal lifestyle, and to further his investment fraud scheme, the Justice Department said. A news release from the department did not say what he purchased with the money.
Andiloro was charged with securities fraud, wire fraud and money laundering. If convicted, he could face up to 50 years in prison and fined up to $500,000.
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