Matthew Dispensa, 58, was sentenced today to 21 months in prison for stealing $342,650 in COVID-19 relief funds through fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications. Additionally, he has been ordered to pay $492,650, including $342,650 in restitution and a civil monetary penalty of $150,000.
According to the U.S. Attorney’s Office for the District of New Hampshire, Dispensa fraudulently applied for both PPP and EIDL loans, misrepresenting the operations of his businesses. On May 5, 2020, he applied for a $90,400 PPP loan for Gateway Hills LLC, a company with no actual operations outside of his Nashua gym, Gateway Hills Club. Dispensa submitted false documents, including fake tax returns and a fabricated “Management Report,” while claiming a monthly income of $8,700 from Gateway Hills LLC. However, his actual tax returns showed no income from the company.
Later, Dispensa secured an additional $146,650 PPP loan for Gateway Hills Club by falsely claiming an annual payroll of over $542,000 in 2020, despite records showing an actual payroll of only $118,000. In total, he fraudulently obtained $342,650 in PPP loans and attempted to steal another $150,000.
The misappropriated funds were used for personal expenses, including gambling on DraftKings, purchasing Tesla stock worth over $83,000, and buying 10,000 shares in a real estate investment trust.
U.S. Attorney Jane E. Young commented, “The defendant lied to obtain hundreds of thousands of dollars in pandemic relief funds, funds meant to help people during the worst economic and public health crisis in decades.” She added that this case highlights the office’s commitment to using both criminal and civil measures to hold accountable those who defraud pandemic relief programs.
