BOSTON — A former North Shore resident was sentenced Wednesday in connection with filing fraudulent applications for more than $660,000 in Paycheck Protection Program (PPP) loan funds and using those funds for personal expenses, including buying an alpaca farm in Vermont.
Dana L. McIntyre, 59, of Grafton, Vermont and previously of Beverly and Essex, was sentenced by U.S. District Court Judge Denise Casper to two years in prison and three years of supervised release, Acting U.S. Attorney Josh Levy said in a statement. He was arrested in 2021.
McIntyre, the former owner of Rasta Pasta Pizzeria in Beverly, was also ordered to pay $679,156 in restitution and forfeiture, Levy said. On April 13, McIntyre pleaded guilty to four counts of wire fraud and three counts of money laundering.
“Make no mistake about it, this was no momentary lapse the in fog of the pandemic. Mr. McIntyre submitted multiple bogus applications for pandemic money was supposed to provide a lifeline to small businesses and their employees during a national emergency. He stole from the American taxpayers and the many small businesses which truly needed those loans to survive,” Levy said. “Just last month our office expanded the resources dedicated to investigating and prosecuting COVID fraud. Whether someone used stolen money to buy luxury goods or fancy cars or exotic farm animals, we intend to find them and hold them accountable.”
McIntyre “capitalized on a national catastrophe and stole hundreds of thousands of dollars from a limited pool of money set aside to help struggling businesses, to buy a farm, stock it with alpacas, and make a fresh start for himself in Vermont,” Jodi Cohen, Special Agent in Charge of the FBI’s Boston Division, said in a statement.
“The funds made available through the Paycheck Protection Program were intended to help businesses and their employees get through the financial hardships caused by the COVID-19 pandemic. Instead, Mr. McIntyre’s greed betrayed the good intentions of the American taxpayer,” said Special Agent in Charge Christina Scaringi with the U.S. Department of Housing and Urban Development, Office of Inspector General. “The sentencing today should serve as a reminder that if you defraud pandemic-related government assistance programs, you will be held accountable. HUD OIG will continue to work with its law enforcement partners and the U.S. Attorney’s Office to bring these matters to a just conclusion.”
In March 2020, McIntyre used the names of his adult children to submit two fraudulent applications to the U.S. Small Business Administration for Economic Injury Disaster Loans for businesses that did not exist, Levy said.
Beginning in April 2020, McIntyre submitted an application and weekly certifications in order to receive Pandemic Unemployment Assistance benefits, Levy said. In these filings, McIntyre falsely claimed that he was not working or receiving income as a result of the pandemic, while McIntyre in fact was still operating the restaurant and paying himself income from the business.
By September 2020, when McIntyre sold the restaurant, he had received over $17,000 in PUA and related benefits that he was not entitled to receive, Levy said.
In April 2020, McIntyre submitted a fraudulent application for a PPP loan of over $660,000 through an SBA-approved lender, Levy said. In the application, McIntyre inflated information about the pizzeria’s employees and payroll expenses and falsified an official tax form in an effort to qualify the business for a larger loan amount. After receiving a PPP loan of over $660,000, McIntyre sold the pizzeria and used nearly all the funds to purchase a farm in Vermont, as well as eight alpacas, and other personal expenses, including two vehicles and airtime for his crypto-currency themed radio show.
Cohen said the “FBI will continue to aggressively pursue” people who are misusing money from the economic relief program.
Anyone who knows of similar instances of fraud is asked to call 1-800-CALL-FBI.
The U.S. Department of Justice has more information about combatting Covid fraud on its website.
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