At the height of the COVID-19 pandemic, Timothy A. Taylor told that federal loan assistance administrators that he needed $1.5 million in funding from the Paycheck Protection Program to ensure his 87 employees would still be paid.
One problem: Taylor's business, headquartered in the town of Greece, had one employee who earned $10,000 for the year.
Taylor, 39, was charged with wire fraud and this week pleaded guilty in U.S. District Court in the Western District of New York. He faces up to 20 years in prison and a $250,000 fine when he is sentenced by Chief U.S. District Judge Elizabeth A. Wolford on June 11.
Taylor owns Data Brilliance Software LLC, a software development and managed IT services provider.
Between July 2020 and August 2021, Taylor filed fraudulent applications for PPP loans. His applications said his total monthly payroll was $607,000, according to U.S. Attorney Trini E. Ross.
Data Brilliance Software was approved for loans totaling $1.5 million, which Taylor used for personal expenses, according to Assistant U.S. Attorney Melissa Marangola, the prosecutor in the case.
The plea was the result of an investigation by the FBI, under the direction of Special Agent-In-Charge Matthew Miraglia, the IRS Criminal Investigations Division, under the direction of Special Agent-In-Charge Harry Chavis.
Federal authorities across the country have been busy clawing back fraudulently obtained PPP loans.
Ann Spinosa, owner of Rochester marketing firm Spin Marketing, was the subject of a superseding indictment in November charging her with wire fraud and money laundering.
The U.S. Attorney alleges Spinosa, of Brighton, obtained nearly $500,000 in PPP and Economic Injury Disaster Loan funding for businesses. The case is in discovery mode.
In Texas, a husband and wife were sentenced in October for defrauding the PPP system out of more than $3 million. Michael Fullerton was sentenced to 14 years in federal prison and his wife, Tiffany, nine years.
In January, Mustafa Qadiri of Irvine, California, was charged with bank fraud, wire fraud and money laundering. He's accused of fraudulently obtaining more than $5 million in PPP loans. Upon arrest, authorities seized a Ferrari, Bentley and Lamborghini that authorities say were purchased with those funds.