BEVERLY — Federal prosecutors say a former North Shore company owner grossly inflated the quantity of workforce and payroll at his Beverly pizza store to fraudulently acquire federal COVID-19 reduction money — some of which he applied to obtain a farm and some alpacas up in Vermont.
Dana McIntyre, 57, the previous owner of Rasta Pasta Pizzeria, was arrested Tuesday morning on expenses of wire fraud and cash laundering.
He was envisioned to be produced on $100,000 unsecured bond with a collection of disorders, next his initial overall look Tuesday afternoon by way of video in U.S. District Court docket.
“My consumer denies the allegation and will have additional remark at a afterwards date,” McIntyre’s legal professional, Jason Stelmack, reported in an email to the Affiliated Push.
According to court papers, McIntyre attained much more than $661,000 in Payroll Security Program mortgage funds past year by declaring that he had 47 workers and a month-to-month payroll of $265,000 at his small pizza shop in a strip mall on Cabot Road.
But he utilized unique figures even though submitting for Economic Damage Catastrophe Financial loans and on earlier tax filings, foremost investigators to conclude that McIntyre’s pizza store under no circumstances experienced much more than 10 workforce on its payroll and that he would have skilled for a a lot lessen sum of PPP cash.
Investigators also allege that McIntyre established up fictitious firms in his kid’s names in an attempt to attain catastrophe financial loans.
McIntyre applied for the PPP loans via Kabbage, an on line economical engineering firm that experienced been approved to situation the financial loans.
After obtaining the PPP resources, McIntyre, who experienced lived in Essex, marketed the pizza store and utilised the cash to invest in a farm in Grafton, Vermont, spend for upgrades to the dwelling and house, and buy several alpacas, according to court papers.
He established up a rely on fund as a result of a regulation firm in Vermont, then made transfers from that fund to shell out for the farm, products and cars and $6,380 towards the cost of the alpacas, making use of yet another $3,400 from a payroll account for the balance, the affidavit reported.
On its internet site, Houghtonville Farm advertises offers such as “The Alpaca Expertise,” the “Household Alpaca Picnic” and “Wine, Cheese and Alpaca!” at rates starting at $99 an hour. The farm’s web page also offers alpaca products and solutions and detailed an “Opening Day” occasion for nearby people past Saturday.
Radio exhibit off-air
McIntyre also allegedly applied PPP money to shell out for a basic 1950 Hudson, a GMC Sierra truck and $6,500 to shell out for airtime on WBOQ, a North Shore radio station, to host a paid out software referred to as “The Dana Crypto Display” where he talked about cryptocurrency.
Todd Tanger, the president of the station, which goes by “North Shore 104.9,” identified as the allegations “upsetting” and reported the plan is becoming taken off from the air.
“The Paycheck Security Plan has been incredibly critical to lots of local corporations that are struggling to endure about the past year,” Tanger stated in an email. “Mr. McIntyre’s display has been on air at North Shore 104.9 FM for about 3 decades and right now we eradicated it from air immediately pending investigation and the outcome of the rates.”
McIntyre also ran a enterprise named New England Block Chain LLC, which operated a community of Bitcoin ATMs in the space, just one of them inside his company, according to a 2018 press release marketing his WBOQ segments.
Some of the cash, in accordance to an affidavit submitted in the case, went towards other bills, like $2,200 in February to a “cosmetic spa.”
McIntyre did use some of the cash to pay back $43,000 to 6 people recognized as Rasta Pasta workers. Almost fifty percent of that went to a single particular person, who continued receiving weekly payments right after McIntyre marketed the pizza company. That person also owned a business in Rockport, which received $1,600 in cash above a 4-month time period.
McIntyre also allegedly employed Venmo to mail virtually $17,000 to another person else who federal investigators said appeared to have labored at Rasta Pasta but who did not look in any payroll records.
Investigators found out discrepancies in the measurement of McIntyre’s payroll as noted on a variety of tax types and unemployment insurance and personnel payment insurance policy paperwork, in accordance to the affidavit.
McIntyre has in the previous structured or taken portion in charitable routines as perfectly, nonetheless. In the early 2000s, when he owned a landscaping business in Salem, McIntyre served as president of the Salem Rotary Club. He helped lead a workforce of members who went to Bolivia to assist in a software to assistance youngsters born with cleft lip and cleft palate. He also organized an once-a-year holiday celebration for children in the state’s foster care program and led initiatives to increase money for a local community middle in Salem’s Position community.
If convicted, he could face up to 20 years in jail on every of the two counts.
Justice of the peace Decide Judith Dein requested that at the time introduced, McIntyre need to surrender his passports, not use any medicine which include cannabis, which is however unlawful beneath federal regulation, and have no speak to with any witnesses in the scenario other than his own young children.
The decide also requested that he not market or transfer any property, irrespective of whether those belongings are underneath his possess name or component of any have faith in or other entity from which he positive aspects, even though the circumstance is pending. A probable bring about listening to will be set for later on this month.
Courts reporter Julie Manganis can be attained at 978-338-2521, by e mail at [email protected] or on Twitter at @SNJulieManganis.