A Baltimore County man pleaded guilty in federal court to one count of wire fraud involving over $1.3 million in coronavirus pandemic loans.

David Epstein, 46, of Owings Mills, was indicted in June 2023 on eight counts of wire fraud over a pair of out-of-state phone calls, two loan applications, the million-dollar transfer, the purchase of a Mercedes-Benz GT53C4, a fake loan payment, and a $28,000 check to a contractor with the memo line “pool desposit.”

In a plea agreement filed Tuesday, Epstein pleaded guilty to the charge related to the $1.3 million transfer.

From May 2020 to February 2021, Epstein defrauded Celtic Bank, which is headquartered in Salt Lake City and participated as a lender in the Paycheck Protection Program, and Blue Vine, a California-based financial technology company that received PPP loan applications through a server in West Virginia as well as the U.S. Small Business Administration, according to the indictment.

On April 30, 2020, Epstein submitted a false and misleading loan application to Celtic Bank through Blue Vine seeking around $1,307,170 in Paycheck Protection Program funds that stated that his temporary staffing business PEI had 382 employees. A tax form from earlier in 2020 listed 79 employees, according to the indictment.

PPP loans were signed for payroll, business rent and utilities. Prosecutors described a phone call from Epstein to a Blue Vine representative about his application, according to the indictment, and defined calls to banks and loan applications as interstate commerce.

On May 4, 2020, the $1.3 million loan was disbursed to an account at SunTrust Bank that Epstein had registered for a separate business, Stafquik. He opened two accounts in his name at both SunTrust and Capital One and transferred the funds. Epstein then spent around $110,000 on a Mercedes-Benz and paid $139,000 to a contractor for home renovations and a pool installation, according to the indictment.

“It was the object of the scheme to defraud for Epstein to personally enrich himself by fraudulently obtaining and attempting to obtain [loan] funds for his own personal use and benefit,” the indictment reads. “Including payments for the purchase of a Mercedez-Benz, renovations to Epstein’s home and the installation of a pool there.”

Epstein also spent the loan funds on a $100,000 settlement over unpaid insurance premiums and around $344,000 on other personal debts and expenses.

In November 2020, Epstein attempted to file for a COVID-19 Economic Injury Disaster Loan from the Small Business Administration for around $150,000 for Stafquik. On that application, he falsely represented that Stafquik had three employees and gross revenues of over $425,000, according to the indictment.

Epstein faces a maximum sentence of 20 years in prison. He has a sentencing hearing in front of U.S. District Judge Richard D. Bennett scheduled for Jan. 14. According to the plea agreement, the court may seize his property and assets to recover the funds.

A lawyer for Epstein declined to comment.

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