The United States Attorney for the Southern District of New York, Damian Williams, and Amaleka McCall-Brathwaite, Special Agent in Charge of the Eastern Regional Office of the U.S. Small Business Administration's Office of Inspector General, have announced a settlement in a civil fraud lawsuit involving Stefano Maroni. The case centers on false information submitted by Maroni to obtain Paycheck Protection Program (PPP) loans for two related companies he owned and operated in New York City.
Maroni has agreed to pay $1,470,085.65 under a settlement approved by U.S. District Judge Jennifer H. Rearden on December 9, 2024. He admitted to misrepresenting payroll figures and employee headcounts in applications for first-draw and second-draw PPP loans for GMI USA Corp. and Belovefine Ltd., which operated as essentially the same footwear business.
The allegations include inflating payroll figures by double-counting salaries of shared employees between the two entities when only one paid these salaries at any given time. This led to improperly obtained loan forgiveness amounts beyond what was allowable.
U.S. Attorney Damian Williams stated: "Stefano Maroni submitted false information and false certifications to receive Paycheck Protection Program loans to which he and his businesses were not entitled." He emphasized ongoing efforts to address fraud within pandemic-related assistance programs.
According to the complaint filed in Manhattan federal court, Maroni alternated between using Belovefine or GMI as corporate entities while transferring employees between their payrolls without material changes in job functions. Despite operating from the same office space at 3 Columbus Circle, Suite 2410, New York City, Maroni falsely represented them as distinct businesses with separate payrolls.
Belovefine had no employee payroll during early 2020 but still received PPP loans based on inaccurate claims about having paid employees' salaries and taxes as required by eligibility criteria. Additionally, GMI's loan forgiveness application included misrepresented payroll costs due to salary reductions exceeding permissible limits.
As part of the settlement agreement, Maroni acknowledged responsibility for these actions that resulted in obtaining excess PPP funds beyond entitlement.
The government joined a private whistleblower lawsuit filed under seal pursuant to the False Claims Act alongside this case handled by Assistant U.S. Attorney Samuel Dolinger from the Civil Frauds Unit.
Williams praised SBA-OIG's assistance with this case.