The former head of a Hollywood production and distribution company was sentenced Tuesday to 41 months behind bars for attempting to swindle the coronavirus-relief Paycheck Protection Program out of about $1.7 million.
William Sadleir, 68, was sentenced by U.S. District Judge Dolly Gee, who also ordered him to pay $282,566 in restitution.
Sadleir pleaded guilty in March to one federal count each of bank fraud and money laundering.
The Beverly Hills resident — the founder and former owner of Los Angeles-based Aviron Pictures — lied on applications seeking forgivable PPP loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security Act.
Sadleir obtained three loans by falsely claiming the money would be used to support Aviron payroll expenses. The money was actually used for personal expenses, including payments on his and his wife’s credit cards.
Within days of the loans being funded, Sandleir transferred nearly $1 million to his personal checking account, according to papers filed in Los Angeles federal court.
As part of the plea deal, the U.S. Attorney’s Office in Los Angeles recommended that Sadleir’s 41-month sentence would run concurrently with the six-year sentence handed down in New York last month for his participation in fraudulent investment schemes.
Sadleir pleaded guilty in New York in January to two counts of wire fraud, one relating to each of the schemes, for misappropriating more than $25 million that had been invested in Aviron.
Sadleir was the chairman and CEO of Aviron, and oversaw its operations from 2015 until he was ousted four years later, according to court papers.
The 2020 CARES Act was designed to provide emergency financial assistance to businesses impacted by the COVID-19 pandemic. The funds must be used by businesses on payroll costs, interest on mortgages, rent or utilities.