An Oakdale woman faces charges of wire fraud and money laundering after federal prosecutors allege misuse of a half-million-dollar loan intended to help her business weather the COVID-19 pandemic. Stephanie L. Bonincontro, 43, is accused of using funds from the Economic Injury Disaster Loan (EIDL) program for personal gain, as United States Attorney Eric G. Olshan announced.
The indictment, handed down by a Pittsburgh grand jury, explicitly charges Bonincontro with funneling $250,000 into a personal investment account to launder the money. The aid she received was intended to support Sidelines Tree Service, her company, through the economic downturn caused by the pandemic. Yet, from her indictment, funds were directed elsewhere, including paying off credit card debts. Interestingly, according to the U.S. Attorney's Office, approximately $225,000 of the EIDL funds were also used for another company she owned, Chartiers Valley Enterprises, reportedly to settle personal credit card debts.
The U.S. Small Business Administration established the EIDL program to aid businesses impacted by disasters by providing them with necessary financial support. Nevertheless, the indictment puts Bonincontro at risk of a heavy sentence. She could face up to 30 years in prison and fines amounting to $750,000 if found guilty. However, it's important to note that an indictment is not a conviction, and Bonincontro is presumed innocent until proven guilty.
Assistant U.S. Attorney Gregory C. Melucci is leading the prosecution for the government in this case. The investigation that culminated in Bonincontro's indictment was conducted by the Federal Bureau of Investigation and the Internal Revenue Service.
