Two New York men were sentenced after federal prosecutors say they used false paperwork to secure nearly $2 million in COVID-19 relief funds, with prison terms and restitution ordered to repay the Small Business Administration and victim banks.
Federal court records show John L. Hutchins, 72, of Lewiston, New York, and Roberto Soliman, 45, of Niagara Falls, New York, were convicted of conspiracy to commit wire fraud and bank fraud. The pair were sentenced by Judge Meredith A. Vacca following convictions tied to loan applications submitted during the pandemic. The court imposed prison terms and financial orders to make the government and banks whole.
Prosecutors say the conspiracy ran from March 2020 through March 2024, during which Hutchins and Soliman worked with others to obtain Economic Injury Disaster Loans, Paycheck Protection Program loans, and Shuttered Venue Operators Grants. Those relief programs were created to provide emergency financial assistance pursuant to the Coronavirus Aid, Relief, and Economic Security legislation. The charges center on alleged false revenue and expense figures submitted on applications for businesses that were either sham entities or misrepresented their operations.
The defendants are accused of applying for funds under multiple company names associated with Hutchins and Soliman. Prosecutors identified the entities involved as:
- Rapids Theatre Niagara Falls, USA, Inc.
- 1711 Main, LLC
- Bear Creek Entertainment, LLC
- Hutch Enterprises, LLC
- The Hutchins Agency, LLC
- CWE Entertainment, Corp.
According to the records, between March and August 2020 the pair received Economic Injury Disaster Loans totaling $779,500.00, Shuttered Venue Operators Grants totaling $989,905.05, and Paycheck Protection Program loans totaling $115,978.00. In each application, prosecutors say Hutchins and Soliman supplied fabricated revenue and expense numbers to secure those disbursements. The total alleged take from the scheme approaches the $2 million mark cited in the charging documents.
Sentencing outcomes were straightforward: Hutchins was ordered to serve 14 months in federal prison and Soliman was ordered to serve 20 months. Both men also received orders to repay the full restitution amounts determined for the Small Business Administration and the victim banks. The Department of Justice made clear the restitution and prison terms reflect the seriousness of the alleged theft from emergency programs intended to help struggling businesses.
Assistant U.S. Attorneys Paul E. Bonanno and Douglas A. C. Penrose handled the prosecution, presenting evidence tied to financial filings, banking records, and application materials. The filings and courtroom presentations detailed how the defendants allegedly coordinated applications across programs meant to be distinct and targeted to different kinds of pandemic-related hardship. That evidence formed the basis for the conspiracy and fraud convictions returned by the jury.
“These defendants conspired with others to take advantage of government programs designed to assist struggling businesses during the COVID 19 epidemic,” stated U.S. Attorney DiGiacomo. “By submitting false and fraudulent applications, Hutchins and Soliman lined their own pockets, thereby depriving struggling businesses that were actually eligible for this money.
The sentencing and convictions followed a multiagency investigation involving the Federal Bureau of Investigation under Special Agent-in-Charge Philip Tejera and the Internal Revenue Service, Criminal Investigation Division, under Special Agent-in-Charge Harry Chavis. U.S. Customs and Border Protection, directed in the region by Rose Brophy, Director of Field Operations, and the New York State Office of Professional Discipline also participated. Those agencies pooled forensic accounting, bank trace analysis, and document review to build the case.
“Hutchins and Soliman abused a system of benefits put in place specifically for businesses experiencing hardships. Instead of using the money legitimately, the pair stole nearly $2 million from the program while others still waited in line. Today’s sentencing means that each of these fraudsters will now face the punishment of their illicit, greedy behavior,” said Harry T. Chavis, Jr., Special Agent-in-Charge of IRS-CI New York.
