An Anchorage business owner has agreed to pay $397,990 after fraudulently obtaining loans through a federal pandemic relief program, federal prosecutors said Friday.
Robert Gross, 65, submitted false information for six companies he owned to obtain loans and advances from the Economic Injury Disaster Loan program between April and September 2020, the U.S. Attorney’s Office for the District of Alaska said.
As part of the civil settlement agreement, Gross must repay the outstanding loan balances, plus interest, as well as pay $242,990 in damages. Under a criminal non-prosecution agreement, Gross also admitted to the making the false statements and agreed to terms in place of a criminal prosecution, federal prosecutors said.
The agreements help resolve a federal investigation into $164,000 in loans and advances that Gross received under the Coronavirus Aid, Relief, and Economic Security Act.
Congress passed the CARES Act on March 27, 2020. It contained provisions to assist struggling small-business owners during times of economic hardship inflicted by the pandemic, and it added more funds to the EIDL program.
“During a global pandemic, the defendant took advantage of aid programs designed as a lifeline providing critical relief for hardworking people in our communities impacted by COVID,” said Bryan Wilson, acting U.S. Attorney for the District of Alaska, in a statement.
The settlement agreement contends that Gross received the funding because of false claims...
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