BUFFALO, N.Y. — A Little Valley man pleaded guilty to his role in a scheme that laundered almost $1 million from the COVID-19 relief Paycheck Protection Program (PPP).
Adam Arena, 44, pleaded guilty to charges of conspiracy to commit bank fraud and engaging in monetary transactions with criminally derived proceeds. The charges carry a maximum penalty of 30 years in prison and a $1 million fine.
Assistant U.S. Attorney Laura A. Higgins and Cory E. Jacobs of the Criminal Division’s Fraud Section stated that Arena reinstated his previously inactive business, ADA Auto Group, in May 2020. He then provided personal information and the ADA Auto Group's Employer Identification Number for a fraudulent PPP loan.
In July 2020, co-defendant Amanda Gloria submitted a PPP application for Arena's inactive auto group company, seeking a $954,000 loan. Fraudulent documents, including tax forms and payroll reports, were submitted. The documents claimed the company had 50 people on staff in 2019 and an annual payroll of $4.4 million.
Arena directed funds to be wired to a business account controlled by him. He paid Gloria about $24,000 in PPP funds in September. None of the funds Arena collected were used for business expenses.
Charges remain pending against Gloria.
The PPP was established to help small businesses recover from the pandemic and must be used on payroll costs, interest on mortgages, rent and utilities.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form.
