Hedge fund manager Gregory Blotnick accused in COVID scam, held on $500K bail

A hedge fund supervisor charged with 33 counts of grand larceny and fraud for allegedly stealing thousands and thousands of {dollars} in COVID-19 Paycheck Safety Program loans was ordered held on $500,000 bail at his Manhattan Supreme Courtroom arraignment Wednesday.

Gregory Blotnick, 33, allegedly ripped off $4.6 million from the PPP program by submitting a number of fraudulent mortgage functions for his New York teams, Brattle Road Capital LLC and BSC Administration LLC over a one yr interval, state prosecutors stated.

He’s accused of mendacity in regards to the variety of workers at his corporations and claiming he wanted the funds to cowl payroll. As a substitute, he transferred the cash to a brokerage account — and misplaced thousands and thousands within the inventory market, prosecutors alleged.

Blotnick, a resident of West Palm Seaside, Florida, pleaded not responsible Wednesday, and was held on $500,000 money bail, which his attorneys declare he can not afford.

Prosecutors argued for a bigger bail, claiming Blotnick is a flight danger that attempted to depart the nation in April.

Protection attorneys argued the cash supervisor is broke and stated he simply accomplished a substance abuse remedy program and is now taking remedy for bipolar dysfunction, as they argued for leniency.

Gregory Blotnick at his arraignment in Manhattan Supreme Court on July 21, 2021.
Gregory Blotnick at his arraignment in Manhattan Supreme Courtroom on July 21, 2021.
Steven Hirsch

Blotnick faces eight-and-a-half to 25 years in jail if convicted.

“Mr. Blotnick repeatedly took benefit of a system meant to supply lifelines to small companies and their workers through the peak of the COVID-19 pandemic,” District Lawyer Cy Vance wrote in a press launch when Blotnick was charged in April.

The financier can also be going through federal expenses of stealing practically $4 million from this system by falsifying mortgage functions for 3 different companies.

Gregory Blotnick is accused of stealing millions in PPP loans.
Gregory Blotnick is accused of stealing thousands and thousands in PPP loans.
Steven Hirsch

Blotnick squandered that ill-gotten money to purchase greater than $3 million in dropping inventory trades, federal prosecutors stated.

“The Justice Division and its regulation enforcement companions stay dedicated to aggressively pursuing and holding accountable fraudsters who deal with COVID-19 reduction packages like a private piggy financial institution,” Performing US Lawyer Rachael Honig for the District of New Jersey wrote in Could.

Judy Blotnick at her son Gregory Blotnick's arraignment on July 21, 2021.
Judy Blotnick at her son Gregory Blotnick’s arraignment on July 21, 2021.
Steven Hirsch

Blotnick’s lawyer, Jason Berland, stated Blotnick is predicted to plead responsible to the federal expenses subsequent week. He’s due again in Manhattan legal courtroom on October 19.

Neither Blotnick nor Berland could possibly be reached for remark by The Put up Wednesday.

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