A Warren County businessman was accused this week of fraudulently acquiring almost $2 million in federal Paycheck Safety Program (PPP) loans meant to assist small companies through the COVID-19 pandemic, federal prosecutors mentioned.
Rocco A. Malanga, 48, of Hackettstown, was charged with wire fraud, two counts of bank fraud, and one rely of cash laundering, U.S. Legal professional Craig Carpenito mentioned in a launch.
Malanga submitted at the very least three PPP loan purposes on behalf of three completely different companies that fabricated their variety of workers and common month-to-month payroll and diverted the loan funds to accounts that had been managed by his family, together with his younger youngsters, and to a different firm that didn’t receive a PPP loan, authorities mentioned.
The three companies had been Cloud Accounting LLC, which was accredited for $564,632 on April 27, Cedar Grove Transportation Inc., which was accredited for $441,260 on June Three and Pixie Hole which obtained the biggest quantity of funds, $810,204, on Aug. 3, in line with a felony criticism.
The PPP loans had been a part of the federal Coronavirus Assist, Aid, and Financial Safety (CARES) Act which went into legislation on March 29 that was designed to offer emergency monetary reduction to tens of millions of People who had been struggling the financial results of the coronavirus pandemic.
A part of the act included the authorization of as much as $349 billion in forgivable loans to small companies for job retention and sure different bills by means of the PPP. Small companies in New Jersey had been accredited for greater than $9.5 billion in loans from this system as of April 16.
In a single case, Malanga submitted a PPP loan utility on behalf of considered one of his corporations that had supporting documentation that claimed the corporate had 47 workers, a month-to-month payroll of $324,081 and paid workers roughly $3.9 million in whole compensation for 2019, federal prosecutors mentioned. Nevertheless, IRS information confirmed that the corporate paid no salaries or wages final 12 months.
Malanga’s alleged misrepresentations netted him three loans which totaled almost $1.eight million in federal COVID-19 emergency reduction funds.
He made his first courtroom look Thursday by videoconference earlier than a federal decide and was launched on $750,000 unsecured bond.
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Chris Sheldon may be reached at [email protected].