COVENTRY, Vermont — A former New Fairfield resident who now lives in Coventry, Vt., has paid $154,200 to resolve allegations that he spent a significant amount of a small business loan under the Coronavirus Aid, Relief and Economic Security Act to purchase a second home in Vermont.
The news was made public in a release on Wednesday from the U.S. Attorney for the District of Connecticut.
The CARES Act was designed to provide emergency aid to people and businesses impacted by the COVID-19 pandemic, and Section 1100 authorized the Small Business Administration to provide Economic Injury Disaster Loans, or EIDLs, to help people overcome the pandemic’s effects by offering working capital to eligible small businesses, including sole proprietors, to meet operating expenses, prosecutors said.
According to prosecutors, on May 25, 2020, Edward Munday applied for and later received an EIDL Loan as a sole proprietor for EDM Services, his consulting business. The loan documents required Munday to “use all the proceeds of this Loan solely as working capital to alleviate economic injury” caused by COVID-19, prosecutors said.
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The government said that Munday did not use all the proceeds of the loan as working capital for EDM Services and contends that he used a significant amount of the money to purchase a second home in Coventry, Vt., according to prosecutors.
They noted that Munday agreed to pay $104,200 in restitution and a $50,000 penalty to resolve the accusations.
Prosecutors said the Federal Bureau of Investigation handled the investigation and that individuals with information about allegations of attempted fraud involving COVID-19 funds are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or visit the NCDF Web Complaint form here.
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Dalton Zbierski is a digital content producer and writer at FOX61 News. He can be reached at dzbierski@FOX61.com.
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