- New York City prosecutors charged a man with stealing over $2.4 million through PPP loans.
- The man is accused of applying for five PPP loans and lying about the number of employees he had.
- Prosecutors alleged he transferred the "vast majority" of the money to personal trading accounts.
- See more stories on Insider's business page.
A New York City investment manager was charged Friday with stealing more than $2.4 million from five lending institutions through Payment Protection Program loans, prosecutors said in a statement.
Gregory Blotnick, 33, is accused of applying for five separate PPP loans between April 2020 and August 2020, and lying about the number of employees he had at his companies, Brattle Street Capital LLC and BSC Management LLC.
While the loans were meant to cover payroll costs, prosecutors accused Blotnick of instead transferring a "vast majority" of the money to his personal trading accounts and losing it in the market.
"As alleged, Mr. Blotnick repeatedly took advantage of a system intended to provide lifelines to small businesses and their employees during the height of the COVID-19 pandemic," Manhattan District Attorney Cyrus Vance said in a statement.
Blotnick has been charged with five counts of second-degree grand larceny, five counts of second-degree criminal possession of stolen property, and one count of first-degree scheme to defraud.
"At a time when nearly 3,000 businesses were forced to close their doors across New York City, Mr. Blotnick diverted millions in vital PPP funds for his own personal gain," Vance's statement said.
It's unclear whether Blotnick has entered a plea. Insider could not immediately locate an attorney for Blotnick, and his Linkedin page appears to have been taken down. Insider also could not immediately locate representatives for Blotnick's companies.