A Coventry man is facing charges after being accused of fraudulently obtaining $100,000 in COVID-19 relief funds, according to the U.S. Attorney's Office.
Officials said John Matava, 58, was arrested on Saturday and was released on a $60,000 bond Monday.
According to authorities, Matava requested a PPP loan for J.M. Builders LLC through the Coronavirus Aid, Relief and Economic Security (CARES) Act. In the application, he allegedly lied and said the company had eight employees and an average monthly payroll of $40,000.
He told officials that the money would be used for payroll, lease, mortgage, interest and utilities. However, at the time the loan request was submitted, there were no records of payroll or employees with the state Department of Labor.
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He was also subject to criminal charges in two pending cases related to arrests in 2017 and 2018, respectively, according to officials.
In April 2022, Matava was granted the loan through Celtic Bank. He then allegedly used the money for personal expenses, including to pay for a dog breeder, legal fees, a retainer, and more, authorities said.
Officials said he requested an additional $100,000 but was denied.
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A criminal complaint charges Matava with wire fraud affecting a financial institution. Officials said he faces up to 10 years in prison, and he'll have to pay back the PPP loan.
Anyone with information about allegations of fraud involving COVID-19 funding is asked to call the Department of Justice's National Center for Disaster Fraud hotline at 866-720-5721. You can also submit a complaint here.
