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A Hull man who had previously been convicted in a securities fraud scheme was arrested last week and charged with submitting fraudulent documents to receive Paycheck Protection Program and Economic Injury Disaster loans.

Shane Spierdowis, 30, was charged Friday in Boston federal court with one count of wire fraud, according to a statement from the U.S. attorney’s office.

According to a charging documents, Spierdowis applied for U.S. Small Business Administration loans using false Social Security Numbers and fraudulent documentation.

He obtained a PPP loan of $101,517 in the name of a limited liability company, and the funds were wired to a bank in Massachusetts. To obtain this loan, Spierdowis provided a fraudulent corporate bank statement reflecting a balance over $220,000, according to the U.S. attorney’s office, but the bank statement was dated before the account had been opened.

Prosecutors also allege that Spierdowis obtained an EIDL loan of $89,900 for a separate LLC. For both loans, Spierdowis allegedly used Social Security numbers that differ from his actual Social Security number and submitted fraudulent federal tax forms for both LLCs.

The tax forms have Spierdowis’ signature as president of each LLC, according to the U.S. attorney’s statement, and also reflect hundreds of thousands of dollars in wages to LLC employees during all four quarters of 2019. Spierdowis, however, was in federal custody for part of the first quarter of 2019 and all of the second, third and fourth quarters, according to the statement.

He was in prison after violating probation he had received following a conviction for conspiracy to commit securities fraud. This case involved a pump-and-dump scheme in Florida. Spierdowis was one of several people charged in the conspiracy, and he was originally sentenced to five years’ probation.

According to federal court records, Spierdowis had informed the court of his efforts to obtain work in early 2019 without mentioning either LLC.

Hull Man Charged With PPP, EIDL Fraud

by Banker & Tradesman time to read: 1 min
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