June 9, 2022
Manhattan District Attorney Alvin L. Bragg, Jr., today announced the sentencing of New York City-based investment manager GREGORY BLOTNICK, 35, for fraudulently obtaining over $4.6 million from the United Stated government and multiple investors. In total, BLOTNICK sought over $6.8 million in Protection Program (“PPP”) loan disbursements and fraudulently obtained over $4.6 million in PPP funds.
From April 2020 through March 2021, BLOTNICK submitted 21 fraudulent PPP loan applications to 13 lenders on behalf of nine purported businesses that BLOTNICK controlled. BLOTNICK pled guilty to Grand Larceny in the First Degree, Scheme to Defraud in the First Degree, and five counts of violating the Martin Act. He was sentenced to 1-3 years incarceration and executed a confession of judgment totaling $353,000 in favor of several of the investors he defrauded.
“These forgivable loans were created during the COVID-19 pandemic to support businesses in crisis and help retain jobs. As thousands of New York City businesses were forced to close, Mr. Blotnick diverted millions of these funds for his own personal benefit,” said District Attorney Bragg. “If you know someone who has committed this type of fraud, we urge you to call us at (212) 335-8900.”
BLOTNICK was sentenced in federal court on June 7, 2022 to 51 months incarceration. In addition to the prison term, BLOTNICK was sentenced to two years of supervised release and ordered to pay $4,577,631 in…
