Joshua S. Levy, U.S. Attorney | U.S. Attorney for the District of Massachusetts
The owner of a Boston-area pizzeria chain, Stash’s Pizza, has admitted to submitting false information to the U.S. Small Business Administration (SBA) in order to secure a loan for a business he no longer owned. Stavros Papantoniadis, also known as Steve Papantoniadis, aged 49 and from Westwood, pleaded guilty to one count of making false statements. The sentencing is set for April 2, 2025, by U.S. District Judge Angel Kelley. Papantoniadis has been in custody since his arrest on March 16, 2023.
Papantoniadis sold his Randolph, Massachusetts pizzeria in April 2021. Despite this sale and the subsequent cancellation of the related limited liability company by the Secretary of State, he applied for an Economic Injury Disaster Loan between November 2021 and January 2022. These loans were meant to help existing small businesses affected by the COVID-19 pandemic. In his application, Papantoniadis falsely claimed ownership of the Randolph location and reported having 18 employees there at that time. This misrepresentation led to SBA approving a $499,900 loan.
Previously, in June 2024, Papantoniadis was convicted on charges including three counts of forced labor and three counts of attempted forced labor. He was found guilty of coercing five men and one woman into working for him through violent abuse and threats involving immigration authorities. Consequently, he received a sentence of 102 months in prison with one year supervised release and a $35,000 fine in October 2024.
The charge related to false statements carries potential penalties including up to five years imprisonment, up to three years supervised release, and fines reaching $250,000.
The announcement was made by U.S. Attorney Leah B. Foley along with Michael J. Krol from Homeland Security Investigations New England and Jonathan Mellone from the U.S. Department of Labor's Office of Inspector General Northeast Region. The case is being prosecuted by Assistant U.S. Attorneys Timothy E. Moran and Brian A. Fogerty.
In response to pandemic-related frauds like this case highlights, the COVID-19 Fraud Enforcement Task Force was established on May 17, 2021 by the Attorney General to enhance efforts against such crimes using resources across various government agencies.
Reports regarding suspected COVID-19 fraud can be made through the Department of Justice’s National Center for Disaster Fraud Hotline or their Web Complaint Form.