A Florida man who fraudulently obtained more than $ 4.6 million in Payment Protection Program (P3) loans has pleaded guilty to federal charges in New Jersey.

Gregory J. Blotnick, 34, of West Palm Beach and formerly New York City, submitted 21 dishonest PPP loan applications to 13 different lenders for at least nine companies he controlled, according to court documents.

“Mr. Blotnick has repeatedly taken advantage of a system intended to provide lifelines for small businesses and their employees during the height of the COVID-19 pandemic,” Manhattan District Attorney Cy Vance wrote. , in an April press release following Blotnick’s first indictment.

Using falsified information such as employee numbers, corporate federal income tax returns, and payroll documents, Blotnick requested over $ 6.8 million in PPP loans in total and secured more half of its requests.

The Florida man then laundered and misused the loans by transferring the funds to brokerage accounts he controlled to buy more than $ 3 million in stock trades at a loss, court documents show.

“The Department of Justice and its law enforcement partners remain committed to prosecuting and holding accountable fraudsters who treat COVID-19 assistance programs like a personal piggy bank,” the acting prosecutor said Rachael Honig for the District of New Jersey in a May release.

Blotnick has pleaded guilty to a county of wire fraud and one count of money laundering. He is expected to be sentenced on March 1, 2022 and faces up to 30 years in prison, but a Federal District Court judge will determine the sentence.

The former hedge fund manager also faced 33 counts of robbery and fraud in a New York County criminal court for his attempt to steal government money in addition to federal charges. Blotnick pleaded not guilty in July and was held on $ 500,000 cash bond, which his lawyers said he couldn’t afford.

At the time, prosecutors argued that the need for a higher bond was due to the fact that Blotnick allegedly tried to leave the country and was seen as a flight risk.

Blotnick’s attorney Jason Berland sought leniency and claimed he had just finished an addiction program, was on medication for bipolar disorder and was poor.

“The Department of Justice and its law enforcement partners remain committed to prosecuting and holding accountable fraudsters who treat COVID relief programs like a personal piggy bank,” Acting Deputy Attorney General McQuaid said.

United States Attorney General Merrick Garland created the COVID-19 Enforcement Task Force in May 2021 to work with different government agencies to combat and prevent pandemic-related fraud, according to the US Department of Justice.

News week contacted Berland for comment but did not receive a response until publication.