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Pharmacist sentenced to more than 11 years for pandemic relief fraud

The man had been found guilty at trial of seeking $27 million in payroll protection loans for companies that had no employees.

LOS ANGELES (CN) — A Southern California pharmacist was sentenced to more than 11 years in federal prison after a jury convicted him of trying to seek $27 million in pandemic relief loans for companies that had no employees.

Robert Benlevi, 53, of Encino was given a 135-month sentence Tuesday, in accordance with the Justice Department's request. He had been found guilty this past March of multiple counts of bank fraud, making false statements to financial institutions, and conducting monetary transactions with criminally derived funds.

The government had asked the judge to send a clear message that there are serious consequences for defrauding emergency relief programs.

"Actors like the defendant who seek to defraud these programs make it more difficult for administrators of government and other relief programs to get aid to individuals who qualify for and need it," the Justice Department said in its sentencing memorandum. "The defendant’s sentence should serve as a warning and deterrent to others inclined to exploit similar relief
programs."

Between April and June 2020, Benlevi submitted 27 Payroll Protection Program loan applications to four banks on behalf of eight companies. In each application, he sought a $1 million forgivable PPP loan guaranteed by the Small Business Administration. In his fraudulent applications, he claimed that each of the companies had 100 employees and $400,000 in monthly payroll expenses.

Although most of his applications were rejected, he managed to get $3 million in PPP loans, which he used to rent an oceanfront apartment in Santa Monica and to pay for personal expenses.

Benlevi's lawyers with the Federal Public Defender's Office had asked for a sentence of no more than 77 months, arguing there was a low probability that he would break the law again and citing his mental issues, including schizoaffective disorder and post-traumatic stress disorder.

They also argued it wouldn't make sense to make an example out of him given that he's essentially unknown.

"The government’s interest in general deterrence should also have little bearing on his case, which has received little public attention, includes no codefendants, no individual victims, and essentially involves an anonymous person," his attorneys said.

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Categories / Criminal, Government, Health, National

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