Manhattan District Attorney Alvin L. Bragg, Jr., announced the indictment of MARILYN PETER, 54, and MARK ANTHONY, 58, for stealing $1.7 million from the U.S. Small Business Administration (“SBA”) and $500,000 from Empire State Development (“ESD”) by submitting fraudulent applications for COVID-19 pandemic relief programs. Following an investigation conducted with the Offices of the New York State Inspector General, defendants are charged in a New York State Supreme Court indictment with Grand Larceny in the First Degree, Grand Larceny in the Second Degree, and Scheme to Defraud in the First Degree.[1]

“As alleged, Marilyn Peter and Mark Anthony used false information to steal more than $2 million in funds intended to provide relief to businesses at the height of the pandemic,” said District Attorney Bragg. “They then allegedly used a substantial amount of those funds to purchase an apartment complex for their own profit. We will not tolerate abuse of government funds, and I thank our law enforcement partners for their work on this investigation, particularly the New York State Inspector General’s Office.” 

“COVID-19 pandemic relief programs were created to keep New Yorkers’ families and businesses afloat during an unprecedented crisis,” said New York State Inspector General Lucy Lang. “Exploiting those lifelines by diverting public funds for personal gain is not only unlawful — it undermines the trust placed in government at a moment when communities needed it most. My office remains steadfast in protecting the integrity of such programs and ensuring that critical assistance reaches New Yorkers in need.”

As alleged in court documents and statements made on the record, PETER and ANTHONY used the identity of three individuals – two of whom were family members – to submit loan applications for 11 different companies. PETER and ANTHONY controlled email accounts purportedly used by those three individuals and posed as those three individuals when communicating with the SBA and ESD’s grant program administrator, Lendistry, by phone and email. PETER and ANTHONY also executed SBA loan agreements and ESD grant disbursement agreements that contained the names of those three individuals.

From May 5, 2020, to August 10, 2021, PETER and ANTHONY allegedly obtained $1,730,100 in COVID-19 Economic Injury Disaster Loan (“EIDL”) advance funds and loan funds for nine companies by submitting applications containing false information about their number of employees, gross revenues, and cost of goods sold. From August 10, 2021, to December 27, 2022, PETER and ANTHONY sought EIDL loan increases for those nine companies. The SBA flagged those applications for EIDL loan fraud. PETER and ANTHONY have since defaulted on the nine loans.

From September 1, 2021, to April 14, 2022, PETER and ANTHONY allegedly obtained $500,000 in ESD grants for 10 companies by submitting applications containing false 2019 and 2020 gross receipts figures. Five of those companies also had not submitted a 2019 tax return with the IRS at the time that the ESD grant disbursement agreement was signed. One company reported approximately $1 million less in 2019 gross receipts to the IRS than it reported to Lendistry.

In October 2021, PETER and ANTHONY allegedly transferred $1.2 million to Fidelity National Title Insurance as part of a real estate transaction to acquire Hayes Court, an apartment building complex in Jackson Heights, Queens. EIDL loan funds and ESD grant funds previously received by PETER and ANTHONY comprised the majority of those transferred funds. 

Assistant D.A. Jaime Hickey-Mendoza is handling the prosecution of this case under the supervision of Assistant D.A.s Christopher Beard (Deputy Chief of the Rackets Bureau), Christopher Conroy (Chief of the Rackets Bureau) and Judy Salwen (Deputy Chief of the Investigation Division), and Executive Assistant D.A. Jodie Kane (Chief of the Investigation Division). Rackets Bureau Paralegals Andrew Glass and Hayden Ehrenfeld assisted in the investigation. Forensic Accountant Investigator Wei Man Tang also assisted in the investigation, under the supervision of Irene Serrapica, Principal Deputy Bureau Chief of the Forensic Accounting and Financial Investigations Unit, and Robert Demarest, Chief of the Forensic Accounting and Financial Investigations Unit. Rackets Investigator Brittaney Stewart also assisted with the investigation.

D.A. Bragg thanked the New York State Inspector General’s Office, particularly Senior Investigator Ilene Gates and Investigative Counsel Ray Gdula.

D.A. Bragg also thanked the United States Small Business Administration, New York State Urban Development Corporation d/b/a Empire State Development, and B.S.D. Capital Inc. d/b/a Lendistry for their assistance with the investigation.

Defendant Information:

MARILYN PETER

Queens, New York

Charges:

• Grand Larceny in the First Degree, a class B felony, one count
• Grand Larceny in the Second Degree, a class C felony, one count
• Scheme to Defraud in the First Degree, a class E felony, one count

MARK ANTHONY

Queens, New York

Charges:

• Grand Larceny in the First Degree, a class B felony, one count
• Grand Larceny in the Second Degree, a class C felony, one count
• Scheme to Defraud in the First Degree, a class E felony, one count

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[1] The charges contained in the indictment are merely allegations and the defendants are presumed innocent unless and until proven guilty. All factual recitations are derived from documents filed in court and statements made on the record in court.