Naples man, 35, sentenced to more than 7 years in COVID relief fraud; to repay $2.6M
A Naples man was sentenced to seven years and three months in federal prison as part of a string of sentencings stemming from COVID relief fraud.
U.S. District Judge Sheri Polster Chappell sentenced Daniel Joseph Tisone, 35, for wire fraud, bank fraud, illegal monetary transactions and possession of ammunition by a convicted felon.
Polster Chappell also ordered that Tisone forfeit the properties, engagement ring, ammunition and cash seized from bank accounts, as well as to pay restitution in the amount of $2,617,447.17, all traceable proceeds from the offenses.
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He pleaded guilty Aug. 26.
According to court documents, between March 2020 and April 2021, Tisone, submitted false and fraudulent Economic Injury Disaster Loan, Main Street Lending Program, and Paycheck Protection Program loan applications to the Small Business Administration, as well as approved lenders.
The loan applications contained several misrepresentations, including the criminal history, average monthly payroll, number of employees and Tisone's gross revenues, court officials said.
In support of the fraudulent applications, Tisone submitted false, fictitious payroll and tax documents, as well as a fake commercial lease.
Court officials said he fraudulently used the means of identification of individuals who purported to work for Tisone’s companies, including their names, dates of birth, and Social Security numbers, to submit false and fraudulent payroll and payroll tax documents.
Tisone also fraudulently identified an individual to submit a false and fraudulent EIDL application, court documents say.
Tisone’s false and fraudulent representations caused the lenders to approve and fund 10 loans, resulting in the deposit of approximately $2,617,447 into bank accounts Tisone controlled.
Tisone then used the funds to buy residences in Naples, stocks and investment securities, a 2019 Tiara 34LS boat, a 4.02-carat engagement ring and ammunition. The Tiara is a luxury yacht that costs more than $500,000.
On March 20, 2022, while executing a search warrant at his residence, FBI agents discovered more than 800 rounds of assorted .223/5.56 and 9 mm caliber ammunition. As a convicted felon, Tisone is prohibited from possessing a firearm or ammunition under federal law, officials said.
The Coronavirus Aid, Relief, and Economic Security Act is a federal law enacted in March 2020 designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic.
One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses. In April 2020, Congress authorized over $300 billion in additional funding.
The loan relief programs offered specific uses, often with interest and principal forgiven if the borrower met criteria laid out by the government.
The FBI, Special Inspector General for Pandemic Recovery, the IRS – Criminal Investigation lead the probe, with the assistance from the Federal Reserve Board – Office of Inspector General.
Records indicate that Tisone managed four businesses ― TEC Ventures, Idexity, Gordian Capital and Tisone Enterprise Company Ventures. None of them could be reached Friday before publication.
A spokesperson for SG Capital Partners, the company that lent a multi-family dwelling unit to Tisone hung up upon a request for comment.
Tomas Rodriguez is a Breaking/Live News Reporter for the Naples Daily News and The News-Press. You can reach Tomas at TRodriguez@gannett.com or 772-333-5501. Connect with him on Twitter @TomasFRoBeltran, Instagram @tomasfrobeltran and Facebook @tomasrodrigueznews.
This article originally appeared on Naples Daily News: Naples businessman to serve 7 years in COVID-related scam, repay $2.6M
