Man pleads guilty to CARES Act fraud

Allison Corneau, The Eagle-Tribune, North Andover, Mass.
·2 min read

May 18—ANDOVER — A local man who fled from authorities and staged his suicide after appearing in federal court on charges he fraudulently sought hundreds of thousands of dollars in pandemic relief loans has finally pleaded guilty to his crimes.

Andover resident David Adler Staveley — who has used the aliases Kurt David Sanborn and David Sanborn — admitted he conspired with David Andrew Butziger, 53, of Warwick, Rhode Island, to file four fraudulent paycheck protection program loan applications with a Rhode Island bank.

The men claimed they owned businesses with large monthly payrolls, but did not own the businesses.

Staveley, 54, said he and Butziger sought $185,570 to pay employees at Top of the Bay restaurant in Warwick; $144,050 at Remington House Inn restaurant in Warwick; $108, 777 at On The Trax restaurant in Berlin, Massachusetts; and $105,381 for employees at Dock Wireless, an unincorporated business.

Remington House Inn and On The Trax were closed at the time the applications were submitted, according to court documents, and remain closed. Staveley has no ownership interest in Top of the Bay. Dock Wireless did not have any employees and no wages were ever paid by the business, court records show.

Appearing in court Monday, Staveley pleaded guilty to conspiring to commit bank fraud and failure to appear in court. He is scheduled to be sentenced Aug. 2.

Authorities say Staveley staged his suicide three weeks after he appeared in federal court and was released to home confinement. He removed his electronic monitoring device and fled, leaving suicide notes in his car, which was found unlocked and with his wallet inside.

Officials said between May 26 and July 23, 2020, Staveley, who was to have appeared in federal court June 2, 2020, traveled to various states using false identities and stolen license plates. The United States Marshals Service apprehended him in Alpharetta, Georgia, July 23, 2020.

Co-defendant Butziger pleaded guilty on Sept. 18, 2020, to conspiracy to commit bank fraud. He is scheduled to be sentenced June 23.