Source: United States Department of Justice (National Center for Disaster Fraud)
David X. Sullivan, United States Attorney for the District of Connecticut, Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, and Harry Chavis, Special Agent in Charge of IRS Criminal Investigation in New England, announced that TONY STERLIN CANTAVE, 45, of Shelton, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in New Haven for defrauding a COVID-19 pandemic relief program.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act provided emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the distribution of Economic Injury Disaster Loans (“EIDLs”), through the U.S. Small Business Administration (“SBA”), which provided working capital to eligible small businesses to meet operating expenses.
According to court documents and statements made in court, in June 2020, Cantave applied for EIDL funding through the SBA. The application contained a number of materially false statements, including that the business for which Cantave sought the loan, Arbitrage 1 Media, was an ongoing, legitimate business involved in the limousine and transportation business, and that he was not more than 60 days delinquent in his child support obligations. After the SBA reviewed and approved the fraudulent EIDL application, Cantave received $96,200. He then used the proceeds from the loan to pay for personal and non-business expenses, including $16,607.26 to pay off an automobile loan.
Cantave pleaded guilty to one count of theft of government money and one count of making an illegal monetary transaction. Each charge carries a maximum term of imprisonment of 10 years.
Cantave has agreed to pay $104,176.21 in restitution.
Cantave is released pending sentencing, which is not scheduled.
Cantave has two prior federal convictions. In December 1999, he was sentenced in New Haven federal court to 18 months of imprisonment for a firearm offense, and in February 2015, he was sentenced in Hartford federal court to 13 months of imprisonment for his participation in a U.S. Postal Service money order fraud scheme.
This investigation has been conducted by the U.S. Postal Inspection Service and the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
Individuals with information about allegations of fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.