Santa Clarita man pleads guilty to massive P3 loan fraud program
A Santa Clarita man pleaded guilty on Tuesday to claiming more than $ 1 million in fraudulent loans under the federal Paycheck Protection (P3) program.
According to his plea agreement, Raymond Magana, 40, filed loan applications in the amount of $ 940,416 for a business in his name, The Building Circle LLC. These loans contained false statements regarding both the number of employees and the amount of his salary expenses.
Magana said he employed 40 people, but IRS and EDD records showed the company never said it paid any employees …
Investigators also determined that the company’s address in Pico Rivera was actually a 980 square foot single-family home (pictured), not an office building.
Magana also admitted to applying for and receiving a PPP loan of $ 360,415 for a second shell company, Forward Builders LLC, also with false documents.
He now faces up to 30 years in federal prison. Sentencing is scheduled for May.
Magana’s business partner Steven R. Goldstein, 36, of Northridge, also pleaded guilty to fraud. Goldstein admitted to obtaining $ 655,000 in PPP loans for his businesses by submitting false tax documents and false employee information. Goldstein’s sentencing hearing is scheduled for March 30.
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