Man Indicted for Using His Deceased Business Partner’s Identity for Fraud Scheme – Fraud Friday
November 22, 2024
Delaney Sexton
Contributing Editor
Man Indicted for Using His Deceased Business Partner’s Identity for Fraud Scheme – Fraud Friday
Stephen Gurba was charged with five counts of wire fraud, false statements, and aggravated identity theft after he submitted EIDL applications containing the information of his former business partner. He will have to forfeit $1.2 million that is connected to the proceeds of his alleged fraud if he is found guilty.
Gurba applied for EIDLs for two companies, Zenith Express and Big Red Express Trucking. At Big Red Express, a business partner of Gurba’s had a 70% ownership interest in the company while Gurba had the other 30%. They were business partners in several businesses, but the business partner passed away at the end of 2019. In early 2020, Gurba allegedly took advantage of his former business partner’s identity to obtain EIDLs.
During the application process, Gurba used his business partner’s name, date of birth, social security number, and driver’s license for both businesses’ applications. He also forged the partner’s signature on the loan authorization, the note, and the security agreement. As Gurba communicated with SBA to inquire about the status of the Big Red Express EIDL, he impersonated his partner over the phone. The money he gained was allegedly used for unauthorized purposes.
After the EIDL program, Gurba also dipped into the Paycheck Protection Program. He applied for almost $1 million in PPP funds for Big Red Express. The government claims that he was well aware he would not be using the loan proceeds for business-related purposes when he applied for the loan. Instead, the money was allegedly used to enrich himself and his family members, pay off unrelated business debts, and pay other impermissible expenses.
As of now, his trial is set to take place in Spring 2025.