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Debra Hackstadt, age 68, of Albany, was sentenced to 16 months behind bars Tuesday, Nov. 8, in federal court in Albany after pleading guilty to wire fraud in May 2022.
According to the US Attorney’s Office in the Northern District, Hackstadt admitted to fraudulently obtaining 32 government-backed loans worth more than $1.6 million between April 2020 and June 2021.
The funds were obtained through two separate pandemic relief programs - the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDLs).
PPP loans are issued by private financial institutions and backed by the federal government, while EIDLs are issued directly by the US Small Business Administration (SBA).
Prosecutors said the loans were issued to Hackstadt herself, along with various friends and relatives, and several companies that she controlled after Hackstadt lied to the SBA and other lenders on loan applications.
She often made up or exaggerated the total number of employees and payrolls, and falsified tax documents in order to secure the loans, prosecutors said.
In all, Hackstadt received 27 PPP loans and five EIDLs totaling $1,615,546.
In addition to the federally-backed loans, Hackstadt also admitted to fraudulently obtaining two other business loans from private lenders - one for $42,290 and another for $48,500 - which she quickly defaulted on, prosecutors said.
“Today’s sentence holds Debra Hackstadt accountable for a prolific fraud,” US Attorney Carla Freedman said. “She took advantage of an economically devastating pandemic and stole money that was earmarked for legitimate businesses struggling to stay afloat.
“With our law enforcement partners, we will continue to investigate and prosecute those who have stolen from pandemic relief programs.”
As part of her sentence, Hackstadt was ordered to pay $1,696,324 in restitution and to forfeit another $254,812.
She must also complete two years of post-release supervision.
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