FL Man Used Dead Business Partner’s Identity For COVID Fraud: U.S. DOJ

BELLEAIR, FL — A Pinellas County man faces charges in a COVID-19 loan fraud scheme after using his dead business partner’s identity, according to a U.S. Department of Justice news release.

Stephen L. Gurba, 68, was charged with two counts of wire fraud, making a false statement to a financial institution and two counts of aggravated identity theft.

If convicted, Gurba faces a maximum penalty of 20 years in prison on each count of wire fraud, 30 years in prison on the false statement count, and a two-year mandatory term of imprisonment on the aggravated identity theft counts.

Gurba is also expected to forfeit about $1.2 million, which is traceable to the proceeds of the offenses, to the U.S.

Between March and June 2020, Gurba submitted false and fraudulent Economic Injury Disaster Loan (EIDL) applications and supporting documentation on behalf of Big Red Express Trucking, LLC and Zenith Express, LLC, the DOJ said.

To obtain approval and funding for the Big Red and Zenith EIDL loans, Gurba fraudulently assumed the identity of his former business partner, who died in 2019, and listed his former business partner’s name, signature, and other means of identification on the EIDL loan applications certifying under criminal penalty that the applications were true and correct.

Gurba also used his deceased business partner’s name and forged his signature on the EIDL loan authorization agreements and loan notes he submitted to the Small Business Administration (SBA), the DOJ said.

During post-loan related communications with the SBA, Gurba continued to impersonate his deceased business partner. As a result of his fraudulent scheme, he received Big Red and Zenith EIDL loans from the SBA.

Additionally, Gurba applied for a Paycheck Protection Program (PPP) loan on behalf of Big Red from an SBA-authorized financial institution, the DOJ said.

Gurba certified and signed under criminal penalty that all the PPP loan proceeds would be spent on payroll, mortgages, rent or other SBA authorized expenses. In reality, Gurba used the majority of the PPP proceeds on himself, family members, unrelated business debts and other impermissible expenses, according to the DOJ.

Because of his false statements, the financial institution approved and funded a more than $955,000 loan to Gurba.