HARRISBURG, Pa. (WHTM) — On June 7, Scott Levy, 58, of Harrisburg, was charged with bank fraud, wire fraud, and money laundering in connection with federal loans he obtained, according to the U.S. Attorney’s Office for the Middle District of Pennsylvania.
According to Acting U.S. Attorney Bruce Brandler, the information alleges Levy applied on behalf of the Hershey Road Family Restaurant for $227,500 in loans from the federal government during the COVID-19 pandemic. Allegations then say Levy spent the majority of it on personal expenditures and other non-qualifying goods and services.
It also alleges he transferred $125,000 of the proceeds to his mother, who placed the cash in safe deposit boxes.
The restaurant closed in July of 2020.
In November of 2020, Levy pled guilty to tax fraud and related offenses relating to the restaurant. Information says he admitted to failing to pay more than $230,000 in federal income and payroll taxes from 2014-2018, and agreed to make full restitution. Sentencing for this charge is pending based on this new fraud charge.
Both cases will be going to U.S. District Judge Jennifer Wilson later this year. They were investigated by Internal Revenue Service-Criminal Investigation, and will be prosecuted by Assistant U.S. Attorney Christian Haugsby.
If convicted, Levy faces a maximum penalty of up to 90 years in prison, a fine of over $2 million, and a term of supervised release up to 5 years.