(UnitedVoice.com) – As millions of Americans suffered from the economic and emotional impacts of COVID-19, scammers were stealing money from people and the government. According to the Federal Trade Commission, victims of pandemic scams have lost more than $488 million. Scams related to the Paycheck Protection Program (PPP) were particularly vile and that’s what police are accusing a hedge fund manager of defrauding.
On Wednesday, July 21, a judge with the Manhattan Supreme Court ordered Gregory Blotnick, 33, held on a $500,000 cash bail. Prosecutors accuse him of stealing $4.6 million by filing multiple fraudulent loan applications for hedge funds BSC Management LLC and Brattle Street Capital LLC.
Not only did he reportedly file multiple applications, but he also allegedly lied about the number of employees who worked for him and about why he needed the money. Instead of paying his employees with the funds, he put it in a brokerage account and lost it in the stock market.
— AlphaMaven Hedge Funds (@AlphaMavenHF) July 22, 2021
District Attorney Cy Vance released a statement accusing Blotnick of abusing the program that was put in place to help small businesses during the pandemic. He took money that one of the 3,000 businesses that closed their doors in NYC could have used.
Blotnick is facing up to 25 years in prison if convicted.
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