Accused PPP Scammer With Warwick Ties Seeks Release: Report

WARWICK, RI — A Massachusetts man accused of lying to gain federal Paycheck Protection Program loans on behalf of a closed Warwick restaurant — then faking his suicide and fleeing New England — is seeking release from a Rhode Island prison while he awaits trial.

David Stavelely, 53, of Andover, has petitioned a federal judge for release from Wyatt Detention Center in Central Falls to a halfway house or other accommodation so he can receive mental health treatment for post-traumatic stress disorder, The Providence Journal reports.

Federal prosecutors are opposing Staveley's release and say the man has a lengthy criminal record for fraud and deception, a history of violating court orders, and a history of threatening and harassing women. A lawyer for Staveley will be back in federal court on March 22 to make his case.

Back in May, Staveley and David Butziger of Warwick were arraigned on charges that they defrauded the CARES Act SBA Paycheck Protection Program by lying to secure more than a half-million dollars in forgivable loans. Staveley claimed he had to lay off employees at the Remington House, which actually closed in 2018; claimed employees at the Top of the Bay, which he did not own; and sought relief for a Massachusetts restaurant that was closed, prosecutors say. Butziger pled guilty to a conspiracy charge and will be sentenced later this month.

Prosecutors say Staveley in June left a running car near a beach in Quincy, Massachusetts with a suicide note inside the vehicle. Authorities determined that Staveley had faked his death. The move came days after Staveley, free on bond, allegedly removed a GPS tracker and failed to show in court. Prosecutors say Staveley traveled to various states using fake identities and stolen license plates. In July, he was arrested by U.S. Marshals in Alpharetta, Georgia.

Staveley, going under the name of David Sanborn, is also the subject of a Superior Court case where he and others are accused of using fraud to gain control of properties in Warwick that were held by the Butziger family.

Read More in The Providence Journal

Live in Warwick? Click here to subscribe to our free breaking news alerts delivered to your inbox and mobile devices. Download our free Patch mobile app.