PA man applies for new PPP loan while out on bail for prior PPP loans
The pandemic year brought on a lot of new behaviors. For one Pennsylvania man, that included applying for Paycheck Protection Program (PPP) loans. Again and again and again—even though he allegedly did not qualify for any of them.
Randy A. Frasinelli, who is awaiting trial on charges of bank fraud and money laundering, applied for and received initial multiple PPP loans totalling nearly $4 million. And after his accounts were seized and charges filed for fraud and money laundering related to those loans, he applied for a fifth PPP loan, and then for a sixth while out on bond from the fifth allegedly fraudulent application. His last two applications added approximately $2 million to his total PPP haul.
According to District Court affidavits, Frasinelli used the small-business relief loans to purchase multiple luxury vehicles, gold bars, silver coins, and other luxuries. Investigators allege that he did not use the loans for Covid-related small-business survival.
Part of the mystery of Frasinelli’s successful applications for the fifth and sixth loans is how his applications were approved even though he had been charged with bank fraud for prior PPP loans. Authorities also do not yet seem to understand why the first four applications received approvals, given that the businesses claimed by the applicant may have been primarily in name rather than actuality in terms of employees, payrolls, etc.
While no one is currently alleging wrongdoing aside from Frasinelli’s own actions, the apparent ease with which he applied for and received allegedly fraudulent loans has observers wondering about the effectiveness of controls in the application process.
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