PHILADELPHIA, PA — United States Attorney Jacqueline C. Romero has announced that Ronald Hoplamazian, a Pennsylvania businessman, has agreed to pay $3,277,486.35 to resolve allegations of misusing funds obtained through the Economic Injury Disaster Loan (EIDL) program. The program, administered by the Small Business Administration (SBA), was designed to provide financial relief to businesses impacted by the COVID-19 pandemic.
Hoplamazian, who operates Eclipse Capital Partners, LLC, applied for and received a $1.9 million EIDL, stating that the funds would be used exclusively as working capital to address pandemic-related economic challenges. However, federal authorities allege that Hoplamazian instead transferred a significant portion of the money into a personal investment account, in violation of EIDL regulations.
“SBA loaned Hoplamazian almost two million dollars to help his business recover from economic harms caused by the pandemic,” said U.S. Attorney Romero. “Hoplamazian instead allegedly used the EIDL proceeds for an entirely different purpose — to make personal investments — a purpose he knew to be inconsistent with the rules of the EIDL program. We will continue working with our partners to hold accountable individuals and businesses who misuse government programs like this.”
Amaleka McCall-Brathwaite, Special Agent in Charge of SBA OIG’s Eastern Region, echoed the sentiment. “The Economic Injury Disaster Loan program was created to provide financial relief to businesses struggling due to unforeseen circumstances, not for personal enrichment through fraudulent means. SBA OIG will continue to work diligently with our law enforcement partners to protect taxpayer dollars and ensure these critical funds reach those who truly need them.”
The case was investigated by the SBA Office of Inspector General and handled by Deputy Chief Charlene Keller Fullmer, Assistant U.S. Attorney Mansi G. Shah, and Auditor Denis Cooke. The allegations included in the settlement are claims only, and there has been no determination of liability.
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