The Andover man charged with fraudulently filing for more than $500,000 in forgivable federal loans during the COVID-19 pandemic complained to an undercover agent about big businesses obtaining the loans, according to an affidavit.
David A. Staveley, who previously used the name Kurt D. Sanborn, was charged last week with conspiracy and bank fraud. He is accused of lying about having several restaurants and dozens of employees in Massachusetts and Rhode Island.
“In an ironic twist, (Staveley) complained about reports of large businesses being able to obtain (Small Business Association) loans under the Paycheck Protection Program saying that ‘the whole thing has become a little bit of a sham,’” according to an affidavit filed by FBI Special Agent Christine Grady.
Federal court records show that in 2018 Staveley changed his name from Kurt Sanborn “citing religious reasons.”
In December 2015, Kurt Sanborn, then 48, formerly of Dracut, was sentenced to 27 months in federal prison in a bank fraud case in Concord, New Hampshire, according to records.
Also, Sanborn was previously charged with harassing a woman he was dating in Wayland.
Additionally he pleaded guilty to stealing $284,000 from Diamond Action Inc., the company that owns the Lowell Spinners baseball team, according to published reports.
Staveley also used the name of his brother, Gregg Sanborn, according to the federal court records. Gregg Sanborn told an IRS agent he gave Staveley consent to use his name.
“... This was done so that his brother could purchase and run the restaurant without having to disclose his criminal history,” according to Grady’s affidavit.
On Tuesday, Staveley and another businessman, David Butziger, 51, of Warwick, Rhode Island, were the “first in the nation” to be charged with SBA loan crimes, the Department of Justice announced.
Stanley and Butziger were charged with “conspiring to seek forgivable loans guaranteed by the SBA, claiming to have dozens of employees earning wages at four different business entities when, in fact, there were no employees working for any of the businesses,” authorities said.
Staveley made an initial appearance before U.S. Magistrate Judge Lincoln Almond on Tuesday in U.S. District Court in Providence, Rhode Island.
He was released on an unsecured bond of $10,000 and his travel is restricted to the states of Massachusetts or Rhode Island for court purposes or meetings with his attorney. Staveley is also not allowed to obtain a passport or other travel documents while the case is pending, Almond ordered.
Per court order, Staveley must now live in Dracut with a person whose name was redacted in federal court records.
While he was deemed financial unable to hire a private attorney and appointed a public defender, Staveley was also ordered to undergo mental health treatment at his own cost, according to court documents.
Staveley is also not allowed to carry at firearm or other weapon.
If convicted on the federal fraud charges, he faces a maximum sentences of five to 30 years in federal prison and fines of $250,000, according to court records.