Coventry man who allegedly used PPP funds to pay dog breeder and legal fees charged with wire fraud

Mike Mavredakis, Hartford Courant
·2 min read

A Coventry man was arrested and charged with wire fraud after he allegedly obtained $100,000 in COVID-19 relief funding and used it to pay a dog breeder, an RV company and personal legal fees, according to the U.S. Attorney’s office.

John Matava, 58, of Coventry was arrested on federal charges of wire fraud affecting a financial institution and making an illegal monetary transaction after an arrest on Saturday. He appeared before U.S. Magistrate Judge Thomas Farrish in Hartford court on Monday and was released on a $60,000 bond.

In April of 2020, Matava applied for a $100,000 Paycheck Protection Program loan, a federal low-interest loan for small businesses during the COVID-19 aimed at maintaining jobs amidst widespread financial distress, from Celtic Bank for a company called J.M. Builders LLC, the U.S. Attorney’s office said.

The application allegedly contained several false statements, including that J.M. Builders LLC had eight employees and an average monthly payroll of $40,000. The application said the money would be used for payroll, a lease, mortgage, interest and utilities. It also said the owner was not the subject of pending criminal charges, the U.S. Attorney’s office said.

At the time of the application, there were no employees on file with the Connecticut Department of Labor and Matava was the subject of two pending criminal cases, according to the U.S. Attorney’s office.

Celtic Bank disbursed $100,000 to J.M. Builders LLC’s account, where Matava was a signatory, on April 22, 2020. The funds were deposited into an account that was opened the day prior and had a zero balance, the U.S. Attorney’s office said.

Between the date of disbursement and January of 2021, Matava allegedly used the funds primarily for personal expenses, including paying a dog breeder nearly $3,500, paying nearly $4,800 to an RV superstore and legal fees. He allegedly paid $2,000 for a retain on four court cases in Rockville, the U.S. Attorney’s office said.

In January of 2021, he allegedly sought another $100,000 PPP loan from Celtic Bank and the application again allegedly contained false statements and tax information, the U.S. Attorney’s office said.

The charge of wire fraud affecting a financial institution carries a maximum term of 30 years in prison. The charge of making an illegal monetary transaction carries a maximum term of 10 years, the U.S. Attorney’s office said.