Hudson Valley Man Accused Of Stealing Coronavirus-Relief Funds

SAUGERTIES, NY — An Ulster County man was accused of stealing almost $5 million in federal coronavirus relief funds. The Northern District of New York announced Jean R. Lavanture, 47, of Saugerties, was arrested by the FBI Thursday morning at a 8.54-acre New Jersey estate authorities said he bought with the fraudulently obtained funds.

He was charged with bank fraud.

Acting United States Attorney Antoinette T. Bacon said the money was stolen from government programs created to help struggling communities during the COVID-19 pandemic.

"We are on the lookout for fraud, and we will use all available tools to prosecute those who lie, cheat and steal from programs that America's businesses and their employees so desperately need," she said.

According to the criminal complaint, between June 16 and July 22, Lavanture, who is also known as Rudy Lavanture, received more than $4.9 million in Paycheck Protection Program Loans and Economic Injury Disaster Loans, which were issued by two banks and the Small Business Administration to five Saugerties-based companies he controlled.

Authorities said, in the loan applications, Lavanture falsely represented that each company had employees, substantial revenues and a payroll, and he submitted fraudulent tax documents in support of his lies.

According to the complaint, none of these companies ever reported employees to the state Department of Labor or reported income to the IRS for 2017 through 2019.

Lavanture is accused of improperly using the loaned funds to buy properties and pay personal expenses. He withdrew about $440,000 of the funds in cash and drew on the funds to buy a motel in Rockaway Beach, Missouri.

For the Byram Township, New Jersey, estate, which contains an 18-room Tuscan-style mansion, Lavanture used $952,000 of the funds to buy it, authorities said.

If convicted of bank fraud, Lavanture faces up to 30 years in prison, up to five years of post-imprisonment supervised release and a maximum fine of the greater of $1 million or twice his monetary gain or the victims' loss.

The Coronavirus Aid, Relief and Economic Security Act (CARES) was enacted by Congress in March to provide emergency financial assistance to Americans impacted by the pandemic. It authorized forgivable loans to small businesses for job and employee retention and other expenses through the Paycheck Protection Program.

CARES also authorized Economic Injury Disaster Loans to be granted to small businesses and nonprofits experiencing substantial financial disruption because of the virus.

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