Shelton Man Accused Of Defrauding Pandemic Relief Program Pleads Guilty: Feds

SHELTON, CT — A Shelton man accused of defrauding a COVID-19 pandemic relief program pleaded guilty Tuesday before a judge in New Haven, U.S. Attorney for the District of Connecticut David Sullivan, Inspector in Charge of the U.S. Postal Inspection Service's Boston Division Ketty Larco-Ward and Harry Chavis, special agent in charge of IRS Criminal Investigation in New England, announced in a news release.

Tony Sterlin Cantave, 45, of Shelton, waived his right to be indicted and pleaded guilty to one count of theft of government money and one count of making an illegal monetary transaction, according to the release. Each charge carries a maximum prison term of 10 years.

In March 2020, the Coronavirus Aid, Relief, and Economic Security Act provided emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic, according to the release.

One source of relief provided by the CARES Act was the distribution of Economic Injury Disaster Loans through the U.S. Small Business Administration, which provided working capital to eligible small businesses to meet operating expenses, according to the release.

According to court documents and statements made in court, Cantave applied for EIDL funding through the SBA in June 2020.

The application contained a number of materially false statements, including that the business for which Cantave sought the loan, Arbitrage 1 Media, was an ongoing, legitimate business involved in the limousine and transportation business, and that he was not more than 60 days delinquent in his child support obligations, according to the release.

After the SBA reviewed and approved the fraudulent EIDL application, Cantave received $96,200. He then used the proceeds from the loan to pay for personal and non-business expenses, including $16,607.26 to pay off an automobile loan, according to the release.

Cantave is released pending sentencing, which is not scheduled.

Sullivan, Larco-Ward and Chavis also noted Cantave was previously sentenced to 18 months in prison in December 1999 for a firearm offense and to 13 months in prison in February 2015 for his participation in a U.S. Postal Service money order fraud scheme.