Hollyweird Exec Steals Over A Million Meant For Small Businesses
The Trump Administration approved the Corona Stimulus package this past April that sent most Americans at least $1200 individually and gave small businesses an opportunity to get aid due to these lockdowns. The Paycheck Protection Program fund (PPP) was quickly used up and not all small businesses were able to take advantage of it. But that could be because of people like Hollywood Executive Producer William Sadleir. Sadlier ripped off the fund and took 1.7 Million that small businesses desperately needed.
"The U.S. Department of Justice, the Security and Exchange Committee, and the U.S Attorney's Office for the Southern District of New York announced fraud charges against former Hollywood executive producer William Sadleir on Friday. Sadlier allegedly stole $1.7 million in funds meant for coronavirus relief and swindled $25 million from an investor.
Sadleir, the founder and former chairman of Los Angeles-based film production company Aviron Pictures, reportedly lied on applications to get $1.7 million in Paycheck Protection Program funds from the federal government, according to the Department of Justice.
Sadleir obtained PPP loans in April through three Aviron entities; each said to have 33 employees. However, the entities had been removed from Aviron months earlier, and all but a handful of employees had been let go in January.
The PPP funds were part of the Coronavirus Aid, Relief, and Economic Security Act to provide small businesses with loans to stay afloat during the COVID-19 pandemic. Sadleir used the coronavirus money to pay his and his wife's American Express bills, and to make a $40,000 car payment.
“This defendant allegedly used Paycheck Protection Program loans to pay off his personal credit card debts and other personal expenses, rather than using the funds for legitimate business needs,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “As the department has made clear, those who defraud the PPP to line their own pockets at the expense of the American people will be brought to justice.”
“This film producer allegedly made a series of misrepresentations to a bank and the Small Business Administration to illegally secure taxpayer money that he then used to fund his nearly empty personal bank account,” said U.S. Attorney Nick Hanna of the Central District of California. “The Paycheck Protection Program was implemented to help small businesses stay afloat during the financial crisis, and we will act swiftly against those who abuse the program for their own personal gain.”
“These funds were designed to be a lifeline to businesses struggling to stay afloat during the current crisis,” said Assistant Director in Charge Paul Delacourt of the FBI’s Los Angeles Field Office. “The FBI is committed to maintaining the integrity of the PPP and will hold accountable those who cheat the system at the expense of American taxpayers.”
Sadleir should have to pay more back into that fund, as we don't know how many businesses closed due to that money being taken. What a selfish act.