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Middletown man admits to fraudulently seeking millions of PPP loans

A Middletown man currently serving federal supervised release after being convicted and jailed for robbing four banks, admitted in a federal court in Providence on Tuesday to fraudulently asking for more than $ 4.7 million in forgivable loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief and Economic Security Act.

According to the US Department of Justice, Michael C. Moller, 41, admitted to applying for and receiving nearly $ 600,000 in PPP loans which he said was to be used to pay employees at a business he operated. in Fall River, Massachusetts, “Top Notch Tile.” FBI and IRS criminal investigation officers determined that “Top Notch Tile” was not incorporated with the Massachusetts Secretary of State, and investigators were unable to locate any tax or banking records for. the society.

Moller admitted that he applied for a PPP loan in his name and had other applications filed on behalf of his father and his girlfriend’s brother. As a result of these fraudulent bank loan applications, financial institutions provided Moller with a total of $ 599,251 in stimulus PPP loans that he was not entitled to receive.

Further, Moller admitted that by acting alone or with family members and business associates, he had 11 fraudulent PPP loan applications filed on behalf of his girlfriend’s son. The money was to pay the employees of “Alves Top Notch,” a Fall River-based company for which investigators could not find any records. Of the eight applications, three almost identical were filed with different financial institutions, each asking for $ 734,300 in SBA-guaranteed PPP loans. None of the eleven fraudulent claims filed on behalf of Moller’s girlfriend’s son resulted in the disbursement of PPP loans.

The CARES Act was passed by Congress to help businesses affected by the pandemic.

Moller, who remains in federal custody, is expected to be sentenced on January 19, 2021.

According to court records, Moller was convicted in the District of Massachusetts in 2010 for fraud and received a 24-month sentence on probation. During his period of supervised release, Moller was convicted of four counts of bank robbery and sentenced to 108 months in prison and three years of supervised release. His supervised release mandate is expected to end in July 2022.

Margarita W. Wilson

The author Margarita W. Wilson