Cheshire Man Sentenced In COVID-19 Relief Fraud Case: Feds

CHESHIRE, CT — A Cheshire man has been sentenced to three months in prison for fraudulently obtaining nearly $100,000 in federal pandemic relief funds, according to officials.

Tony Sterlin Cantave, 46, was also sentenced Tuesday in New Haven federal court to three years of supervised release following the prison term, U.S. Attorney for Connecticut David X. Sullivan announced.

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

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

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

“The application contained several 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,” officials wrote in the news 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.”

Cantave was also ordered to pay $109,605.21 in restitution, according to officials.

Cantave pleaded guilty in June to one count of theft of government money and one count of making an illegal monetary transaction.

Cantave, who is released on bond, is required to report to prison on July 15, according to officials.

Officials said this is Cantave’s third federal conviction. In December 1999, he was sentenced in New Haven federal court to 18 months of imprisonment for a firearm offense, and in February 2015, he was sentenced in Hartford federal court to 13 months of imprisonment for his participation in a U.S. Postal Service money order fraud scheme.