A Florida man was accused of using a fake business to get more than $1.9 million in coronavirus relief funds, ClickOrlando reported. Federal prosecutors said 48-year-old Keith William Nicoletta of Dade City laundered most of funds with a scrap metal business. Nicoletta allegedly lied on the loan application, claiming his fake business had 69 employees and a monthly payroll of more than $760,000.
"Once the emergency loan was secured, Nicoletta transferred the money between various accounts and withdrew more than $100,000 in cash, officials said," the news outlet said. Officials said Nicoletta used the funds to buy a 2020 Mercedes and a 2020 special edition Ford F-250 pickup.
The 48-year-old then wired $537,000 to a property management company in South Florida, according to prosecutors. None of the money was used for payroll, they added.
Back in March, Congress passed a coronavirus relief package that included the Paycheck Protection Program. This program provided forgivable loans to small American businesses struggling during the COVID-19 pandemic.
Nicoletta was arrested earlier this week. He faces up to 40 years of prison on charges of bank fraud and illegal monetary transactions, according to the U.S. attorney's office in Tampa.
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