Man Charged with General Loan Fraud | Local News


A local man accused of fraudulently depositing $ 500,000 in repayable business loans intended for those in need due to the COVID-19 pandemic is on the run, federal officials have confirmed.

David A. Staveley, who previously used the name Kurt D. Sanborn, has reportedly removed his GPS monitoring bracelet and an arrest warrant has been issued for him, said Jim Martin, a federal spokesperson.

Staveley was charged with conspiracy and bank fraud in early May. He is accused of lying about having several restaurants and dozens of employees in Massachusetts and Rhode Island to obtain loan money from the Small Business Association.

After his initial appearance in U.S. District Court in Providence, Rhode Island, Staveley was released on an unsecured bond of $ 10,000 and his travel was restricted to Massachusetts or Rhode Island for legal purposes or for meetings with his lawyer.

Staveley is also not allowed to obtain a passport or other travel documents while the case is ongoing. And, by court order, Staveley was ordered to live in Dracut with a person whose name was redacted in federal court records. He had previously listed an address in Andover.

He is also not allowed to carry a firearm or other weapon while the criminal case is pending.

If convicted of federal fraud charges, he faces maximum sentences of five to 30 years in federal prison and fines of $ 250,000, according to court records.

Federal Court records show that in 2018 Staveley changed his name from Kurt Sanborn “for religious reasons.”

In May, David Butziger, 51, of Warwick, Rhode Island, was the “first in the country” to be charged with crimes related to SBA loans, the Justice Department said.

Stanley and Butziger have been accused of “conspiring to apply for SBA-guaranteed forgivable loans, claiming that dozens of employees are earning salaries in four different business entities when in fact no employee worked for none of the companies, ”authorities said.

In December 2015, Kurt Sanborn, then 48, formerly of Dracut, was sentenced to 27 months in federal prison in a bank fraud case in Concord, New Hampshire, according to records.

Additionally, Sanborn had previously been accused of harassing a woman he was dating in Wayland.

In addition, he pleaded guilty to stealing $ 284,000 from Diamond Action Inc., the company that owns the Lowell Spinners baseball team, according to published reports.

Staveley also previously used his brother’s name, Gregg Sanborn, according to federal court records.

Follow reporter Jill Harmacinski on Twitter @EagleTribJill.

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