Harrisburg restaurateur charged with COVID-19 loan fraud and laundering
HARRISBURG, Pa. (WHTM) – On June 7, Scott Levy, 58, of Harrisburg, was charged with bank fraud, wire fraud and money laundering in connection with federal loans he obtained, according to the US Attorney’s Office for the Intermediate District. from Pennsylvania.
According to Acting U.S. Attorney Bruce Brandler, reports allege Levy requested on behalf of the Hershey Road family restaurant for a loan of $ 227,500 from the federal government during the COVID-19 pandemic. The allegations go on to say that Levy spent the majority of his personal expenses and other ineligible goods and services.
He also alleges that he transferred $ 125,000 of the proceeds to his mother, who placed the money in safes.
The restaurant closed in July 2020.
In November 2020, Levy pleaded guilty to tax evasion and related restaurant offenses. According to reports, he admitted to failing to pay more than $ 230,000 in federal income taxes and payroll taxes from 2014 to 2018, and agreed to reimburse in full. The conviction for this charge is pending based on this new fraud charge.
Both cases will be referred to U.S. District Judge Jennifer Wilson later this year. They have been investigated by the Internal Revenue Service-Criminal Investigation and will be prosecuted by Assistant US Attorney Christian Haugsby.
If convicted, Levy faces a maximum sentence of 90 years in prison, a fine of over $ 2 million and a supervised release sentence of up to 5 years.