The United States Attorney’s Office for New Jersey announced March 23 that a Warren County businessman was sentenced to 36 months in prison for fraudulently obtaining nearly $1.8 million in federal Paycheck Protection Program (PPP) loans.
In June, Rocco Malanga, formerly of Hackettstown, pleaded guilty to one count of bank fraud and one count of money laundering. He was sentenced Wednesday in Newark federal court by U.S. District Court Judge Julien Neals.
“From April 2020 through August 2020, Malanga submitted false documentation to three lenders to fraudulently obtain approximately $1.8 million in federal COVID-19 emergency relief funds meant for distressed small businesses,” according to court documents and statements. “He submitted at least three PPP loan applications on behalf of three different business entities in which he fabricated the number of employees employed by each business entity, as well as their average monthly payroll. Malanga then diverted some of the proceeds from the loans to fund a business that did not receive PPP loan funds.”
In addition to the three years behind bars, Neals also sentenced Malanga to three years of supervised release and ordered $1.8 million in restitution and $1.8 million in forfeiture.