NEW HAVEN – A Shelton man who operated a Bridgeport limousine and taxi service pleaded guilty Tuesday to defrauding a Covid-19 pandemic relief program before U.S. District Judge Victor A. Bolden in New Haven. He faces a maximum of 20 years in prison.
U.S. Attorney for the District of Connecticut David X. Sullivan; Ketty Larco-Ward, inspector in charge of the U.S. Postal Inspection Service, Boston Division; and Harry Chavis, special agent in charge of IRS Criminal Investigation in New England, announced the guilty plea.
Tony Sterlin Cantave, 45, of Shelton, waived his right to be indicted and pleaded guilty.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act provided emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the distribution of Economic Injury Disaster Loans, through the U.S. Small Business Administration, which provided working capital to eligible small businesses to meet operating expenses.
According to court documents and statements made in court, in June 2020, Cantave applied for the CARES Act funding. The application contained a number of materially false statements, including that the business for which Cantave sought the loan – Arbitrage 1 Media – was an ongoing, legitimate business involved in the limousine and transportation business, and that he was not more than 60 days delinquent in his child support obligations.
After the SBA reviewed and approved the fraudulent application, Cantave received $96,200. He then used the proceeds from the loan to pay for personal and non-business expenses, including $16,607.26 to pay off an automobile loan.
Cantave pleaded guilty to one count of theft of government money and one count of making an illegal monetary transaction. Each charge carries a maximum term of imprisonment of 10 years.
- Cantave has agreed to pay $104,176.21 in restitution.
- Cantave is released pending sentencing, which is not scheduled.
The defendant has two prior federal convictions. In December 1999, he was sentenced in New Haven federal court to 18 months of imprisonment for a firearm offense, and in February 2015, he was sentenced in Hartford federal court to 13 months of imprisonment for his participation in a U.S. Postal Service money order fraud scheme.
Individuals with information about allegations of fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at (866) 720-5721, or via the NCDF Web Complaint Form.
