A local man charged with fraudulently filing for $500,000 in forgivable business loans meant for those who need them due to the COVID-19 pandemic is on the run, federal officials confirmed.
David A. Staveley, who previously used the name Kurt D. Sanborn, is believed to have removed his GPS monitoring bracelet and a warrant has been issued for his arrest, said Jim Martin, a federal spokesperson.
Staveley was charged with with conspiracy and bank fraud in early May. He is accused of lying about having several restaurants and dozens of employees in Massachusetts and Rhode Island to obtain loan money from the Small Business Association.
Following his initial appearance in U.S. District Court in Providence, Rhode Island, Staveley was released on an unsecured bond of $10,000 and his travel was restricted to 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. And, per court order, Staveley was ordered to live in Dracut with a person whose name was redacted in federal court records. He had previously listed an Andover address.
He is also not allowed to carry at firearm or other weapon while the criminal case is pending.
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.
Federal court records show that in 2018 Staveley changed his name from Kurt Sanborn “citing religious reasons.”
In May, 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.
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 previously used the name of his brother, Gregg Sanborn, according to the federal court records.
Follow staff reporter Jill Harmacinski on Twitter @EagleTribJill.