Remington House owner pleads for PPP fraud

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The United States District Court in Providence, RI.
The United States District Court in Providence, RI.

WARWICK, RI – David Butziger, 52, listed as owner of the Remington House property in Apponaug, has honored his agreement to plead guilty to conspiracy to commit bank fraud in a PPP fraud case in United States District Court.

U.S. Attorney Aaron L. Weisman alleged that Butziger and his accomplice David Adler Staveley, 53, of Andover, MA, filed bogus bank loan applications for more than half a million dollars in forgivable loans under the CARES Act.

Butziger admitted to conspiring with David Adler Staveley, aka Kurt David Sanborn, aka David Sanborn, 53, of Andover, MA, to apply for SBA-guaranteed forgivable loans, claiming dozens of employees are earning salaries in four different companies, three restaurants and an electronics company, when in fact no employee worked for any of the companies.

Butziger admitted to applying for a loan to BankNewport under the Federal Paycheck Protection Program (PPP), which is part of the CARES Act passed by Congress on March 29, 2000, on behalf of an entity not incorporated which it called Dock Wireless. The loan application was for $ 105,381.50 and fraudulently claimed that Dock Wireless had 7 employees and an average monthly payroll of $ 42,152.60. According to the government, in truth and in fact, Dock Wireless had no employees and no wages were ever paid by Dock Wireless.

Butziger also admitted to conspiring with Staveley who himself allegedly submitted three fraudulent bank loan applications for SBA loans under the PPP totaling $ 438,577. It is alleged that Staveley claimed that the loans were to be used to pay employees at three restaurants he claimed to own and operate, including Top of the Bay and Remington House in Warwick and On The Trax in Berlin, MA.

In his guilty plea, Butziger said he applied for a loan from BankNewport under the Federal Paycheck Protection Program (PPP), which is part of the CARES Act passed by Congress on March 29, 2000, in name of an unincorporated entity which he called Dock Wireless. The loan application was for $ 105,381.50 and fraudulently claimed that Dock Wireless had 7 employees and an average monthly payroll of $ 42,152.60. According to the government, in truth and in fact, Dock Wireless had no employees and no wages were ever paid by Dock Wireless.

Butziger testified that he conspired with Staveley who himself allegedly submitted three fraudulent bank loan applications for SBA loans under the PPP totaling $ 438,577. It is alleged that Staveley claimed that the loans were to be used to pay employees at three restaurants he claimed to own and operate, including Top of the Bay and Remington House in Warwick and On The Trax in Berlin, MA.

According to Weisman’s office, an investigation determined that Remington House and On The Trax were not open until the start of the COVID-19 pandemic and at the time the loan applications were submitted, and that Staveley did not own or had no role. at the Top of the Bay restaurant.

Appearing today before U.S. District Court Judge Mary S. McElroy, Butziger pleaded guilty to conspiring to commit bank fraud, U.S. Attorney Aaron L. Weisman, the Special Agent in Charge, said. Joseph R. Bonavolonta of the FBI Field Office in Boston and Acting Special Agent in charge of the Internal Revenue Service Criminal Investigation Joleen Simpson.

Butziger is expected to be sentenced on December 18.


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