A Baltimore County businessman, identified as David Epstein from Owings Mills, has pleaded guilty to one count of wire fraud. Epstein's admission of guilt is tied to the fraudulent attainment of over $1.3 million in loans intended to aid small businesses during the COVID-19 pandemic through the CARES Act, as reported by the U.S. Attorney’s Office of the District of Maryland.
At 46 years old, Epstein carried out a scheme against various financial institutions, like Cross River Bank and the Small Business Administration (SBA), as he sought funds from both the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. Announced by U.S. Attorney Erek L. Barron and the IRS-CI's Acting Special Agent in Charge Kareem A. Carter, this case unveils the highly methodic, though deceitful, prowess with which Epstein exacted his elaborate fraud.
In his plea deal, Epstein admitted to submitting false information in his PPP loan applications, exaggerating employee numbers and business costs. He used fake bank statements to apply for funds through his company, PEI Staffing. Instead of using the money for business needs, he spent it on personal luxury items like a high-end car and home renovations.
Epstein now faces a maximum of 20 years in prison and is set for sentencing on January 14, 2025. On this day, justice could be duly served for those to whom the funds were truly owed, the hardworking individuals across our pandemic-scarred nation.
