BRIDGEPORT, Conn. — A Coventry builder who fraudulently obtained COVID-19 relief funds was sentenced in Bridgeport to two years in prison on Friday, followed by three years of supervised release.
John Matava, 60, pled guilty on Jan. 2, 2024, to charges that he used false information to acquire $100,000 in COVID-19 relief loans that he was not meant to receive, FOX61’s Doug Stewart reported in January.
Prosecutors said that Matava applied to Celtic Bank for a $100,000 Paycheck Protection Program loan for J.M. Builders LLC in April 2020 after Congress authorized more than $300,000 billion in PPP funding as part of the Coronavirus Aid, Relief and Economic Security Act, which provided emergency financial assistance to Americans suffering from economic hardship brought on by the pandemic.
Matava’s application submission included multiple false representations, according to court documents.
The application said J.M. Builders LLC had eight employees and an average monthly payroll of $40,000, that the funds would be used for payroll, lease, mortgage, interest, and utilities, and that the business owner was not subject to pending formal criminal charges, according to the U.S. Attorney for Connecticut.
At the time of the PPP loan application, however, there were no records of payroll or employees of J.M. Builders with the state’s Department of Labor. Also, Matava was subject to criminal charges in two pending cases related to arrests in 2017 and 2018, according to the U.S. Attorney.
Celtic Bank deposited $100,000 into a bank account for J.M. Builders on April 22, 2020, and Matava was the signatory, after opening an account the day before that had zero dollars in it.
Between April 2020 and January 2021, Matava allegedly used the funds for personal expenditures, including $3,498 to pay a dog breeder, $4,777 to an RV superstore, and several thousand dollars on legal fees for four cases in Rockville.
Matava sought another $100,000 in PPP money from Celtic Bank in January 2021 and included more false statements and fraudulent tax documents. The application was denied by the bank.
Matava was arrested on Jan. 7, 2023, and pled guilty on Jan. 2, 2024, to one count of wire fraud affecting a financial institution and one count of making an illegal monetary transaction, Stewart reported.
Matava was released on a $60,000 bond and is in home detention. He must report to prison on May 13, 2024, and pay $100,000 in restitution, a judge ordered on Friday.
Dalton Zbierski is a digital content producer at FOX61 News. He can be reached at dzbierski@FOX61.com.
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