John L. Hutchins, owner of Rapids Theatre in Niagara Falls, and Roberto Soliman have been sentenced for their roles in a scheme to defraud federal COVID-19 relief programs out of more than $1.8 million. U.S. District Judge Meredith A. Vacca sentenced Hutchins to 14 months in prison and Soliman to 20 months. Both were also ordered to pay full restitution to the Small Business Administration and the affected banks.
According to Assistant U.S. Attorneys Paul E. Bonanno and Douglas A.C. Penrose, from March 2020 through March 2024, Hutchins and Soliman conspired with others to submit fraudulent applications for loans available under federal relief programs such as the Economic Injury Disaster Loans (EIDL), Paycheck Protection Program (PPP), and Shuttered Venue Operators Grant (SVOG). These programs were established by the CARES Act to provide emergency financial support during the COVID-19 pandemic.
The fraudulent loan applications were submitted on behalf of several companies owned by Hutchins, including Rapids Theatre Niagara Falls, USA, Inc., 1711 Main, LLC, Bear Creek Entertainment, LLC, Hutch Enterprises, LLC, The Hutchins Agency, LLC, as well as CWE Entertainment Corp., which was owned by Soliman.
Between March and August 2020, the two men received $779,500 in EIDL funds, $989,905 in SVOG funds, and $115,978 through PPP loans by submitting false revenue and expense information on their applications.
“These defendants conspired with others to take advantage of government programs designed to assist struggling businesses during the COVID 19 epidemic,” said U.S. Attorney Michael DiGiacomo. “By submitting false and fraudulent applications, Hutchins and Soliman lined their own pockets, thereby depriving struggling businesses that were actually eligible for this money."
Harry T. Chavis Jr., Special Agent-in-Charge of IRS-CI New York stated: “Hutchins and Soliman abused a system of benefits put in place specifically for businesses experiencing hardships. Instead of using the money legitimately, the pair stole nearly $2 million from the program while others still waited in line. Today’s sentencing means that each of these fraudsters will now face the punishment of their illicit, greedy behavior.”
The investigation was conducted by agencies including the Federal Bureau of Investigation; Internal Revenue Service Criminal Investigation Division; U.S. Customs and Border Protection; and New York State Office of Professional Discipline.
