NYC Investment Manager Steals Over $2.4 Million Through PPP Loans
New York City investment manager, Gregory Blotnick, has been charged with embezzling more than $2.4 million from five different lenders through Payment Protection Program (PPP) loan applications.
According to the Manhattan district attorney’s office, Blotnick was charged with multiple counts of second-degree grand larceny and second-degree criminal possession of stolen property, as well as one count of first-degree scheme to defraud.
The 33-year-old is being accused of repeatedly taking advantage of a system that was designed to help small businesses during the economic fallout from the Covid-19 pandemic. Over 3,000 small businesses ended up closing their doors due to their inability to raise funds through traditional means.
Blotnick applied for five different PPP loans between April 2020 and August that year, lying in his applications about the number of employees working at his two companies – Brattle Street Capital LLC and BSC Management LLC. According to his applications, money was meant to cover payroll costs, but instead, it ended up in his personal trading accounts. Blotnick ultimately lost the money in the market.
He applied for the first loan in April at Cross River Bank, asking for $491,100 to be used as payroll for Brattle Street Capital LLC’s 25 employees. Blotnick wired half of the funds to one of his own Interactive Broker trading accounts. The other half was wired to an individual who used to be an investor at Blotnick’s investment firm. Blotnick submitted the next set of applications for loans in May at TransPecos and Northeast Bank. He used the money in the same way – around $250.000 from each loan was moved to his personal accounts.
Blotnick continued the same pattern in June, applying for loans at the American Express National Bank for 45 employees and in August at Ponce Bank for 16 employees, ultimately pocketing over $2.4 million.