BALTIMORE, MD—A Baltimore County businessman has admitted to using more than $1.3 million in Paycheck Protection Program loans to purchase a Mercedes-Benz and make extensive home renovations, federal authorities announced.

David Epstein, 46, of Owings Mills, pleaded guilty to one count of wire fraud after submitting fraudulent CARES Act loan applications, according to the U.S. Attorney’s Office in Maryland.

The CARES Act was created in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects of the COVID-19 pandemic. The act offered forgivable loans to small businesses for job retention and other expenses through the Paycheck Protection Program.

Between May 2020 and February 2021, Epstein submitted fraudulent PPP loan applications and Economic Injury Disaster Loan applications for his business, PEI Staffing, authorities said.

In April 2020, Epstein submitted a PPP loan application that falsely claimed PEI had 382 employees, when the company actually had 79 employees.

Epstein also submitted a fake February 2020 bank statement for a SunTrust bank that purported to be a bank statement of PEI, but was actually a bank statement for another one of his businesses, Stafquik.

One day after receiving the PPP funds, on May 5, 2020, Defendant made an ACH transfer in the amount of $110,356.48 from the SunTrust account that received the PPP funds to Mercedes-Benz Financial in connection with a payment for a 2019 Mercedes-Benz GT43C4 automobile previously purchased by the Defendant.

From May to August 2020, Epstein transferred approximately $138,522 to a contractor for extensive renovations to his home and the installation of a pool.

He also used the funds to pay $100,000 in connection with a settlement agreement pertaining to a 2013 litigation involving unpaid insurance premiums and to pay off a $344,341 debt related to funds he misappropriated from a business partner.

Epstein could face a sentence of up to 20 years in prison, followed by up to three years of supervised release. Sentencing has been scheduled for Jan. 14, 2025.

This article was written with the assistance of AI and reviewed by a human editor.

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