Two New York men were sentenced to prison for committing fraud.
John L. Hutchins, 72, of Lewiston, NY, and Roberto Soliman, 45, of Niagara Falls, NY, who were convicted of conspiracy to commit wire fraud and bank fraud, were sentenced to prison by Judge Meredith A. Vacca.
The men allegedly applied for loans for fake companies and stole money meant for struggling businesses suffering from COVID restrictions.
Hutchins was sentenced to serve 14 months in prison, while Soliman was sentenced to serve 20 months.
Both defendants were also ordered to pay full restitution to the Small Business Administration and the victim banks.
Assistant U.S. Attorneys Paul E. Bonanno and Douglas A. C. Penrose, who handled the case, said that between March 2020 and March 2024, Hutchins and Soliman conspired with others to file fraudulent loan applications to obtain money through Economic Injury Disaster Loans, the Paycheck Protection Program, and the Shuttered Venue Operators Grant. The loans available for these programs were designed to provide emergency financial assistance pursuant to the Coronavirus Aid, Relief, and Economic Security.
Hutchins and Soliman applied for loans under the following companies, which were owned by Hutchins:
- Rapids Theatre Niagara Falls, USA, Inc.
- 1711 Main, LLC
- Bear Creek Entertainment, LLC
- Hutch Enterprises, LLC
- The Hutchins Agency, LLC
- CWE Entertainment, Corp. (owned by defendant Soliman)
Between March and August 2020, Hutchins and Soliman received Economic Injury Disaster Loans totaling $779,500.00, SVOG loans totaling $989,905.05 and PPP loans totaling $115,978. In support of each of the loans, Hutchins and Soliman submitted false revenue and expense figures for the businesses on the loan applications.
“These defendants conspired with others to take advantage of government programs designed to assist struggling businesses during the COVID 19 epidemic,” stated U.S. Attorney DiGiacomo. “By submitting false and fraudulent applications, Hutchins and Soliman lined their own pockets, thereby depriving struggling businesses that were actually eligible for this money.
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The sentencings are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Philip Tejera, the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Harry Chavis, U.S. Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations, and the New York State Office of Professional Discipline.
“Hutchins and Soliman abused a system of benefits put in place specifically for businesses experiencing hardships. Instead of using the money legitimately, the pair stole nearly $2 million from the program while others still waited in line. Today’s sentencing means that each of these fraudsters will now face the punishment of their illicit, greedy behavior,” said Harry T. Chavis, Jr., Special Agent-in-Charge of IRS-CI New York.
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