[Baltimore Sun] Owings Mills man pleads guilty to pandemic loan wire fraud, faces up to 20 years

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A Baltimore County man pleaded guilty in federal court to wire fraud involving over $1.3 million in coronavirus pandemic loans.

From May 2020 to February 2021, David Epstein, 46, of Owings Mills, defrauded Cross River Bank, Bluevine, Celtic Bank and the U.S. Small Business Administration to obtain loans for his business, PEI Staffing, according to a news release Tuesday from the U.S Attorney’s Office for the District of Maryland.

On April 30, 2020, Epstein submitted a false and misleading loan application seeking around $1,307,170 in Paycheck Protection Program funds that stated that the temporary staffing business had 382 employees. A tax form from earlier in 2020 listed 79 employees, according to the release.

On May 4, 2020, the $1.3 million loan was disbursed to a bank account Epstein had registered for a separate business, and he opened four personal accounts at two separate banks and transferred the funds “to be used for personal and unauthorized expenses,” according to the release. Epstein spent around $110,000 on a Mercedes-Benz and paid $139,000 to a contractor for home renovations and a pool installation, according to the release. Epstein also spent the loan funds on a $100,000 settlement over unpaid insurance premiums and around $344,000 on other personal debts and expenses.

Epstein faces a maximum sentence of 20 years in prison. He has a sentencing hearing in front of U.S. District Judge Richard D. Bennett scheduled for Jan. 14.

A lawyer for Epstein wasn’t immediately available for comment.

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