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Scott Solomon, age 37, of Albany, pleaded guilty to two counts of bank fraud in Albany federal court on Monday, Dec. 11.
According to prosecutors, he admitted to applying for and obtaining Paycheck Protection Program (PPP) loans in 2020 for two Saratoga Springs restaurants that he formerly operated.
PPP loans were issued by financial institutions in 2020 and 2021 and guaranteed by the US Small Business Administration. Funds were meant to help businesses cover expenses like payroll, interest on mortgages, and rents.
In order to secure his loans, Solomon provided false and forged tax documents with his application and lied about the number of employees and payroll, prosecutors said.
His application was approved and he spent the funds – totaling $163,993 – in ways that were prohibited by the program.
He later had $87,500 in loans forgiven by lying and telling the lender that he used most of the loaned funds for payroll.
Solomon faces up to 30 years in federal prison when he’s sentenced in April 2024.
He also agreed to pay $163,993 in restitution and to forfeit the same amount as proceeds of his crimes.
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