PPP Loan Recipient Pleaded Guilty to Bank Fraud in Case Handled by OIG on Behalf of the Pandemic Response Accountability Committee (PRAC)

On January 10, 2024, a Paycheck Protection Program (PPP) loan recipient pleaded guilty to one count of Bank Fraud.  Marco Schiavenin, owner of Sterling Flooring in Fairfax, Virginia, pleaded guilty in the Eastern District of Virginia.  According to the factual statement in support of the guilty plea, on or about May 20, 2020, Schiavenin, acting on behalf of Sterling Flooring, submitted a PPP loan application that contained false statements to obtain PPP funds under the custody and control of WebBank. WebBank subsequently disbursed $206,105 to Schiavenin based on these materially false statements. According to the factual statement, Schiavenin also fraudulently obtained a PPP loan for Dust Cleaners in the amount of $206,875.  The plea agreement includes a restitution provision in which Schiavenin agreed to compensate WebBank for a total loss amount of $620,917.  This investigation is being conducted by the OIG’s Washington Office on behalf of the PRAC.