ERIE, PA — Martin Meade Kobsik, a 42-year-old resident of Stoneboro, Pennsylvania, pleaded guilty in federal court on Thursday, December 21, 2023, to a charge of theft of government property. The announcement was made by United States Attorney Eric G. Olshan.
Kobsik admitted his guilt to one count before United States District Judge Susan Paradise Baxter. As part of his guilty plea, Kobsik confessed that he had obtained a $150,000 COVID-19 Disaster Assistance Loan from the Small Business Administration (SBA) in April 2020 by falsely claiming that he needed the funds to maintain his business.
In reality, Kobsik used the loan proceeds for personal expenses, a vacation, and home improvements. These actions constituted a clear violation of the terms of the SBA loan, which were intended to provide critical financial support to businesses struggling with the impact of the COVID-19 pandemic.
Judge Baxter has scheduled sentencing for Kobsik on April 12, 2024, at 11:00 a.m. According to federal law, Kobsik could face a maximum sentence of 10 years in prison and a fine of up to $250,000, or both. The actual sentence will be determined based on the seriousness of the offense and any prior criminal history of the defendant, as per the Federal Sentencing Guidelines.
Pending his sentencing, Kobsik has been allowed to remain free on bond.
The case against Kobsik is being prosecuted by Assistant United States Attorney Christian A. Trabold. The investigation leading to Kobsik’s prosecution was conducted by the Federal Bureau of Investigation in conjunction with the Pennsylvania State Police.
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