Keith Nicoletta Biography – Keith Nicoletta Wiki
Federal prosecutors alleged Friday that a Florida man Keith Nicoletta used a fake business to receive a $1.9 million Paycheck Protection Program (PPP) loan — then used some of the funds to purchase a Mercedes and pickup truck.
The US Attorney General’s Florida Regional Office said 48-year-old Keith Nicoletta had taken the loan, claiming that he owned a scrap metal business with 69 employees and a payroll of over $ 760,000 per month. However, Nicoletta had no reported salary for any employee in Florida in 2019 and 2020, according to The Associated Press.
Federal prosecutors said Nicoletta immediately laundered PPP funds after receiving the payment in May. He allegedly transferred the money between accounts at various financial institutions.
“None of the money was used for payroll,” federal prosecutors said.
After withdrawing more than $ 100,000 in cash, Nicoletta allegedly spent at least $ 106.00 for the 2020 Mercedes and purchased a 2020 special edition Ford F-250 pickup for more than $ 66,000.
Authorities also claimed that Nicoletta transferred $ 537,000 to an undisclosed property management company in South Florida.
Nicoletta was arrested last week on charges of bank fraud and illegal money transactions. Whether he is still in custody is not immediately known.
Prosecutors accuse Nicoletta of alleging that he is a scrap metal business with 69 employees on his loan application and a payroll of more than $ 760,000 per month.
When the emergency loan was secured, the authorities said Nicoletta transferred the money between various accounts and withdrawn more than $ 100,000 in cash. Nicoletta later bought the 2020 Mercedes and 2020 special edition Ford F-250 pickup. He also remitted about $ 537,000 to a property management company in South Florida. None of the money was used for payroll.
A Nicoletta’s lawyer did not immediately respond to a message requesting comment.
The Paycheck Protection Program represents billions of dollars in forgivable small business loans for Americans struggling with the COVID-19 pandemic. It’s part of the coronavirus aid package that became federal law in March.
According to the complaint, in or around May 2020, Nicoletta fraudulently provided more than $ 1.9 million in contingency funds in connection with a Pay Check Protection Program (“PPP”) loan.
The Coronavirus Aid, Aid and Economic Security (“CARES”) Act is a federal law that came into force in March 2020. It is designed to provide immediate financial assistance to millions of Americans suffering from the economic impact caused by the COVID-19 pandemic. A source of relief provided by the CARES Act is authorization of up to $ 349 billion in potentially forgivable loans to small businesses to keep their businesses going, and some other expenditure through PPP. In April 2020, Congress authorized over $ 300 billion in additional PPP funding.
The PPP allows qualified small businesses and other organizations to take out loans with a two-year maturity and a one percent interest rate. Businesses should use PPP loan revenues for payroll costs, mortgage interest, rent, and utilities. PPP allows for the forgiveness of interest and principal if the business spends its revenues for these expenses within a specified period and uses at least a certain percentage of the loan for payroll expenses.
Nicoletta’s PPP loan application falsely claimed that Nicoletta is a local scrap metal business with 69 employees allegedly exceeding $ 760,000 in monthly salary expenses or $ 9 million per year. In fact, Nicoletta had not reported any employee wages to the State of Florida for 2019 or 2020.
When the emergency loan was secured, Nicoletta did not use its PPP funds for qualifying expenses. Instead, he immediately laundered the money and transferred it between various accounts in different financial institutions. It also attracted over $ 100,000 in cash. Nicoletta then purchased a 2020 Mercedes for more than $ 106,000 and a 2020 special edition Ford F-250 pickup for over $ 66,000. He also made a transfer of about $ 537,000 to a property management company in southern Florida. None of the money was used for payroll.
The complaint is simply a formal charge that a defendant has violated one or more of the federal penal code, and each defendant is presumed innocent until proven guilty and proven guilty.
This case is being investigated by the Tampa Field Office, Federal Investigation Bureau and the Internal Revenue Administration – Criminal Investigation. The case is being tried by the United States Deputy Attorney General Kristen A. Fiore.