ANDOVER – The Andover man, who was charged with fraudulently applying for more than $ 500,000 in forgivable federal loans during the COVID-19 pandemic, complained to an undercover agent, according to an affidavit, that large corporations were breaking the Received loans.
David A. Staveley, previously using the name Kurt D. Sanborn, was charged Tuesday with conspiracy and bank fraud. He is charged with lying about several restaurants and dozens of employees in Massachusetts and Rhode Island.
“In an ironic twist, (Staveley) complained about reports that large companies (Small Business Association) could get loans under the paycheck protection program, saying that ‘it has become a bit of a hypocrisy,'” said one affidavit from FBI special agent Christine Grady.
Federal court records show that in 2018 Staveley changed its name from Kurt Sanborn “citing religious reasons”.
In December 2015, the then 48-year-old Kurt Sanborn, formerly Dracut, was sentenced to 27 months federal prison in a bank fraud case in Concord, New Hampshire, according to records.
Sanborn was also previously charged with molesting a woman in Wayland with whom he was dating.
He also pleaded guilty to stealing $ 284,000 from Diamond Action Inc., the company that, according to published reports, owns the Lowell Spinners baseball team.
Staveley also used his brother Gregg Sanborn’s name, according to federal court records. Gregg Sanborn told an IRS agent that he consented to Staveley using his name.
“… This was done so that his brother could buy and run the restaurant without revealing his criminal record,” says Grady’s affidavit.
On Tuesday, Staveley and another businessman, David Butziger, 51, of Warwick, Rhode Island, were the “first in the country” to be charged with SBA credit crimes, the Justice Department said.
Stanley and Butziger were charged with “conspiring to seek forgivable SBA-guaranteed loans and claiming dozens of employees earning wages in four different business units when in fact no employees were working for any of the companies” , announced the authorities.
Staveley first appeared before US Judge Lincoln Almond in the US District Court in Providence, Rhode Island, on Tuesday.
He was released on $ 10,000 unsecured bail and his travel is restricted to Massachusetts or Rhode Island for legal purposes or to meet his attorney. Staveley was also not allowed to receive a passport or other travel documents while the proceedings were pending, Almond ordered.
According to the court order, Staveley must now live in Dracut with a person whose name has been blacked out on federal court files.
While found financially unable to hire a private attorney and appointed a public defender, Staveley was also ordered, according to court documents, to undergo psychiatric treatment at his own expense.
Staveley is also not allowed to carry a firearm or other weapon.
If convicted of federal fraud, he faces maximum sentences of five to 30 years in federal prison and fines of $ 250,000, according to court records.
Follow reporter Jill Harmacinski on Twitter @EagleTribJill.