Scott man who got millions in fraudulent Covid-19 relief loans pleads guilty and faces jail
A Scott man who fraudulently obtained federal covid-19 relief loans and used the money to buy luxury vehicles and artwork and pay tuition pleaded guilty on Tuesday to bank fraud and money laundering.
Randy Frasinelli, 66, will be sentenced Dec. 20 by U.S. District Judge W. Scott Hardy.
According to the plea agreement, he faces a sentence of 63 to 78 months in prison.
Also under the plea agreement, Frasinelli is liable for $3.8 million in restitution and must give up items he purchased with Paycheck Protection Program money.
These items included a 2008 Ford Mustang Shelby, 2014 Mercedes Benz GL5, 2015 BMW 6 Series, 2015 Mercedes Benz M-Class, 2020 Land Rover Defender, 2011 Porsche Panamera, 2019 Yamaha YZFR6K, jewelry, art art, firearms. and several bank and investment accounts.
According to the original criminal complaint filed against Frasinelli, he requested and received $3.8 million in money set aside by the federal government to help small businesses continue to pay their employees during the pandemic.
The government set up a complex scheme involving falsified tax records and payroll reports that Frasinelli then used to secure five separate Paycheck Protection Loans, including one for $1.3 million that he received more than a month after the FBI served him with search warrants and seized the property he had purchased illegally.
Frasinelli applied for the loans on behalf of four companies: Grant-Williams Associates; Grant-Williams Globe; Grant-Williams International and Grant-Williams Associates Corp.
The government said it claimed in a loan application for Grant-Williams Associates to have 23 employees, but in another for the same company it claimed to have only six.
However, the state Department of Revenue said there was no business entity registration or employer identification number for any of these corporations.