The owners of a Monroe hair salon have agreed to pay more than $169,000 to settle federal charges that the fraudulently misspent funds allocated to the business under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
In April 2020, Gerard Carbonaro applied for an Economic Injury Disaster Loan and Grant/Advance on behalf of his wife, Janine E. Carbonaro, as sole proprietor for Hair Attraction Design Team in Monroe. The loan documents required Janine E. Carbonaro to “use all the proceeds of this Loan solely as working capital to alleviate the economic injury” caused by Covid-19.
However, the Carbonaros used the $109,000 they received in federal funds to pay off the mortgage of a residential property in Florida and to purchase an additional residential property in Florida for personal investment purposes.
In their settlement, the Carbonaros paid $169,563.60 to resolve the charges against them and have agreed to withdraw a pending application for a loan increase.
