SANTA ANA, California – An Orange County man was sentenced today to 30 months in federal prison for fraudulently obtaining more than $1.5 million in Paycheck Protection Program (PPP) COVID-relief loans that he used for personal expenses and stock market trading.
William Nicoloff Jr., 51, of Mission Viejo, was sentenced by United States District Judge James V. Selna, who also ordered him to pay $1,554,063 in restitution. At today’s hearing, Judge Selna said Nicoloff’s conduct was “extremely troubling” because it “pervert[ed] a public program designed to help small businesses during a time of severe economic hardship.”
Nicoloff pleaded guilty in April 2021 to one count of bank fraud and one count of conducting an unlawful monetary transaction.
From April 2020 to June 2020, Nicoloff obtained six PPP loans by defrauding two banks. To obtain the loans, he submitted to the banks false documents on behalf of four companies he owned and controlled – including Stonecreek Capital Partners and David Capital LLC – as well as himself and another individual. The fraudulent documents included falsified bank records, phony lease agreements, altered incorporation records, fake IRS records and bogus employee information.
On the loan applications, Nicoloff falsely certified the number of employees and average monthly payrolls of the applicant companies and falsely claimed…
