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ADDISON, Ill. - A suburban businessman is facing federal charges after allegedly teaming up with a California man to scam over $6.3 million from small business relief programs tied to the CARES Act.
Francesco Distefano, 28, from Addison, Illinois, and Sargis Urumieh, 57, from Glendale, California, are accused of exploiting two major Covid-19 relief programs: the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) Program.
The PPP was designed to provide forgivable loans for essential business expenses like payroll and rent, while the EIDL program offered loans and grants to help cover operating costs.
According to prosecutors, the duo submitted bogus applications for loans and grants on behalf of two companies, West Coast POS Inc. and National POS Inc., where Urumieh was a corporate officer.
Distefano also allegedly applied for loans for his own company, Distefano Enterprises LLC.
The applications reportedly included false details about the companies’ employee numbers, revenues and payroll expenses.
The indictment claims Distefano splurged on luxury cars, including a Lamborghini Huracan, a Maserati Ghibli and a Porsche 911. It also says both men used fraud proceeds and a fake mortgage application to buy a home in Glendale, California.
Distefano is now facing 11 counts of wire fraud, five counts of money laundering, and one count of making a false statement to a bank. Urumieh is charged with eight counts of wire fraud.
Their court dates in Chicago haven’t been scheduled yet.