HARRISBURG, Pa. — A Harrisburg-area restaurant owner is facing federal fraud and money laundering charges after allegedly misusing federal funds intended for COVID-19 pandemic relief, the U.S. Attorney's Office for the Middle District of Pennsylvania announced Tuesday.
Scott Levy, 58, owner of the Hershey Road Family Restaurant in Harrisburg, was charged Monday with bank fraud, wire fraud, and money laundering, according to U.S. Attorney Bruce D. Brandler.
He is accused of applying for $227,500 in federal loans on his business' behalf, Brandler said. Once he obtained the funds, he allegedly spent the majority of the loan proceeds on personal expenses and other non-qualifying goods and services, according to Brandler.
Levy also allegedly transferred $125,000 of the money to his mother, who then placed cash in safe deposit boxes, Brandler claimed.
The restaurant closed last July, Brandler said.
Levy pleaded guilty in November 2020 to tax fraud and related offenses in connection to the restaurant, admitted he had failed to pay more than $230,000 in federal income and payroll taxes from January 2014 to December 2018, according to Brandler. Levy agreed to make full restitution.
Sentencing in that case has been continued pending the resolution of the investigation into Levy’s new fraud and money laundering offenses, Brandler said. Both of Levy’s cases will be consolidated for purposes of sentencing, which is expected to take place later this year in front of United States District Judge Jennifer P. Wilson, Brandler said.
Both of the cases against Levy were investigated by Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Christian T. Haugsby is prosecuting the case.
Levy faces a maximum penalty on up to 90 years’ imprisonment, a fine of up to $2,610,000, and a term of supervised release of up to five years on the charges in both of his cases.
