David X. Sullivan, United States Attorney for the District of Connecticut, alongside Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service in Boston, and Harry Chavis, Special Agent in Charge of IRS Criminal Investigation in New England, announced that Tony Sterlin Cantave from Shelton has pleaded guilty to defrauding a COVID-19 pandemic relief program. The 45-year-old waived his right to be indicted and entered his plea before U.S. District Judge Victor A. Bolden.
The charges stem from the Coronavirus Aid, Relief, and Economic Security (CARES) Act introduced in March 2020 to provide financial assistance during the COVID-19 pandemic. One aspect of this was the Economic Injury Disaster Loans (EIDLs) administered by the U.S. Small Business Administration (SBA) for small businesses.
According to court documents and statements made during proceedings, Cantave applied for EIDL funding through the SBA in June 2020 using false information. He claimed that Arbitrage 1 Media was an active business within the limousine sector and falsely stated he was not delinquent on child support payments. After approval based on these claims, Cantave received $96,200 but used it for personal expenses such as paying off an automobile loan.
Cantave pleaded guilty to theft of government money and making an illegal monetary transaction; both charges carry a potential prison sentence of up to 10 years each. He agreed to pay $104,176.21 in restitution and is currently released pending sentencing.
This case highlights Cantave's previous federal convictions: an 18-month sentence in December 1999 for a firearm offense and a 13-month sentence in February 2015 related to a postal service fraud scheme.
The investigation involved efforts from both the U.S. Postal Inspection Service and IRS Criminal Investigation Division with prosecution led by Assistant U.S. Attorney David T. Huang.
Authorities urge anyone with knowledge about fraudulent activities related to COVID-19 relief programs to report them via the Department of Justice’s National Center for Disaster Fraud Hotline or their online complaint form.
