PA Restaurateur Used Pandemic Funds For Personal Expense: Feds

Norristown PA

10 June, 2021

10:21 AM

Description

PENNSYLVANIA — A Pennsylvania restaurant owner faces charges in federal court after authorities said he used hundreds of thousands of dollars in business loans disbursed during the pandemic for personal expenses. Scott Levy, 58, of Harrisburg, faces up to 90 years in prison and a $2.6 million fine for the fraud. Levy, who owns the Hershey Road Family Restaurant, applied for some $227,500 in loans back in the spring of 2020, authorities said. Once he received the money, he spent most of it on personal expenses, and then transferred some $125,000 of it to his mother, according to the U.S. Attorney's Office. His mother then placed the money in safe deposit boxes. Levy also failed to pay some $230,000 in federal income and payroll taxes over a four year period for his restaurant, federal authorities said. The money was owed from Jan. 2014 to Dec. 2018. Sentencing for the two cases, which will be handed down by District Judge Jennifer P. Wilson, will be consolidated, officials said. The maximum 90-year sentence "is not an accurate indicator" of the Levy's likely penalty, authorities acknowledge, noting that federal sentencing guidelines take into account a number of factors including criminal history, need to protect the public, and more.