A restaurant owner has been arrested for bank fraud, wire fraud, and money laundering in connection with federal loans he obtained, according to the U.S. Attorney’s Office for the Middle District of Pennsylvania.
Scott Levy, 58, of Harrisburg, applied for PPP loans on behalf of his business, Hershey Road Family Restaurant, and received $227,500 in loans from the federal government during the COVID-19 pandemic, according to the DOJ.
The restaurant closed in July of 2020.
Levy is accused of spending the majority of those funds on his personal expenses.
The case alleges Levy transferred the remaining $125,000 to his mother, who placed the cash in safe deposit boxes.
Levy pled guilty to tax fraud and related offenses relating to the restaurant in Nov. 2020
Those charges were for failing to pay more than $230,000 in federal income and payroll taxes from 2014-2018. The sentencing for that charge is pending due to this new PPP fraud charge.
Both cases will be heard by the U.S. District Judge Jennifer Wilson and will be prosecuted by Assistant U.S. Attorney Christian Haugsby.
Levy faces a maximum penalty of up to 90 years in prison, a fine of over $2.6 million, and a term of supervised release up to 5 years.
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