Steven Andiloro, a 53-year-old resident of Mooresville, North Carolina, has been sentenced to 45 months in prison for orchestrating an investment fraud scheme and misusing COVID relief funds. The announcement was made by Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Alongside the prison sentence, U.S. District Judge Kenneth D. Bell mandated that Andiloro serve three years of supervised release and pay restitution amounting to $5,341,155 to his victims.
The case involved collaboration between various agencies including the United States Secret Service, represented by Special Agent in Charge Jason Byrnes; the Federal Bureau of Investigation (FBI), represented by Acting Agent in Charge James C. Barnacle Jr.; and the Small Business Administration's Office of Inspector General, led by Special Agent in Charge Amelaka McCall-Brathwaite.
From 2018 to 2021, Andiloro conducted a fraudulent investment scheme. He convinced victims to invest in both real and fictitious businesses through false representations about their investments' allocation. Some believed their money supported a car service business while others were misled into thinking they were investing in a non-existent marijuana dispensary business. Instead of investing as promised, Andiloro used these funds for personal expenses and operated a Ponzi scheme.
In addition to the investment fraud, Andiloro also committed COVID-related fraud from April 2020 to March 2021. He secured over $2.6 million from the Paycheck Protection Program (PPP) using fraudulent applications filled with false financial data about his businesses.
Despite his conviction, Andiloro remains released on bond until he reports to a designated federal facility.
U.S. Attorney Ferguson expressed gratitude towards the investigative efforts of the U.S. Secret Service, FBI, and SBA-OIG.
The prosecution was handled by Assistant U.S. Attorneys Graham Billings and Katherine Armstrong from Charlotte’s U.S. Attorney’s Office.
For those with information regarding attempted COVID-19 related frauds, reports can be submitted through the Department of Justice’s National Center for Disaster Fraud Hotline or its web complaint form.
