Robert Benlevi, of southern California, was convicted by a federal jury of bank fraud, making false statements to a financial institution and money laundering on March 28.
According to court documents, and evidence presented at trial, Benlevi submitted 27 Paycheck Protection Program (PPP) loan applications to four banks between April and June 2020 on behalf of eight companies solely owned by him. In the applications, Benlevi sought a total of $27 million in forgivable PPP loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. In his fraudulent applications, Benlevi represented that each of his companies had 100 employees and average monthly payroll of $400,000, even though the companies did not have any employees or payroll expenses.
Benlevi also submitted fabricated IRS documents falsely stating that each of the companies had an annual payroll of $4.8 million. Based on the fraudulent loan applications, three of Benlevi’s companies obtained $3 million in PPP funds.
Although Benlevi falsely represented that the funds sought through the PPP loan applications would be used for payroll and certain other business expenses, authorities said he instead used them for personal expenses, including cash withdrawals, payments on his personal credit cards, transfers to other personal and business accounts he controlled, and renting an oceanfront apartment.
Benlevi was sentenced to 135 months in prison for submitting fraudulent applications seeking money from the Paycheck Protection Program, submitting false statements to a financial institution, and money laundering.