The owner of a closed central Pennsylvania restaurant who already has pleaded guilty to federal tax evasion charges has been hit with new accusations that he defrauded government loan programs designed to aid businesses harmed by the COVID-19 pandemic.
The U.S. Attorney’s Office in Harrisburg claims Scott Levy, who closed his Hershey Road Family Restaurant last year, lied on loan applications to illegally secure $237,500.
Levy filed those falsified applications after pleading guilty in the tax fraud case, Assistant U.S. Attorney Christian Haugsby said in filings in U.S. Middle District Court.
Levy, 58, of Harrisburg, is still awaiting sentencing in the tax case. Haugsby said Levy neglected to report his guilty plea and pending sentencing on loan applications he filed with the Paycheck Protection Program and Economic Injury Disaster Loan program.
That money is supposed to provide financial assistance to help businesses continue to function.
Haugsby claims Levy sent $125,000 in loan proceeds to his mother in Florida so she could stash it for him. Another $39,000 went for Levy’s personal use, the prosecutor said, and Levy spent another $6,000 at home improvement stores and to dine out, pay veterinary bills, rent a vacation home and make tax payments.
The newly filed charges are counts of bank fraud, wire fraud and money laundering.
Acting U.S. Attorney Bruce Brandler said Tuesday that Levy’s $230,000 tax fraud case and the $237,500 loan fraud case will be consolidated. Levy…