The owners of a Monroe hair salon have agreed to pay more than $169,000 to settle federal charges that fraudulently misspent funds were allocated to the business under the CARES (Coronavirus Aid, Relief and Economic) Act. Security).
In April 2020, Gerard Carbonaro applied for an economic disaster loan and grant/advance on behalf of his wife, Janine E. Carbonaro, as sole proprietor of Hair Attraction Design Team in Monroe. The loan documents required that Janine E. Carbonaro “use all proceeds of this loan solely as working capital to mitigate the economic harm” caused by Covid-19.
However, the Carbonaros used the $109,000 they received in federal funds to pay off the mortgage on residential property in Florida and to purchase additional residential property in Florida for personal investment.
In their settlement, the Carbonaros paid $169,563.60 to resolve the charges against them and agreed to withdraw a pending request for a loan increase.
