A New York City investment manager was charged last week with stealing more than $2.4m from multiple lenders by fabricating information on Paycheck Protection Program (PPP) loan applications.
According to a statement from the office of Manhattan District Attorney Cy Vance Jr., Gregory Blotnick is accused of misrepresenting payroll expenses at his companies Brattle Street GP LLC and BSC Management LLC in applications for five PPP loans between April and August of 2020, each from a different bank. Based on the allegedly false information, the lenders approved a combined $2.4 million in PPP loan funds for the companies.
Prosecutors allege the loans were never used to pay employees, and Blotnick instead funnelled the majority of the funds into personal trading accounts ‘and subsequently lost them in trading activity.’
He is also accused of wiring hundreds of thousands of dollars to a person identified as a previous investor of Blotnick’s investment management firm.
Blotnick, 33, previously served stints as an analyst at a variety of companies, including hedge fund behemoth Citadel.
‘As alleged, Mr. Blotnick repeatedly took advantage of a system intended to provide lifelines to small businesses and their employees during the height of the COVID-19 pandemic,” Vance said in a statement. ‘Mr. Blotnick diverted millions in vital PPP funds for his own personal gain.’
Blotnick is charged with multiple…