NEWARK, NJ – Rocco A. Malanga, a 39-year-old businessman from Warren County, New Jersey, has been sentenced on Wednesday to 36 months in prison for fraudulently obtaining nearly $1.8 million in federal Paycheck Protection Program (PPP) loans. Malanga pleaded guilty to one count of bank fraud and one count of money laundering on June 28, 2022, before U.S. District Judge Julien X. Neals.
Between April and August 2020, Malanga submitted false documentation to three lenders to obtain COVID-19 emergency relief funds for distressed small businesses. He falsified the number of employees and average monthly payroll for three different business entities in the loan applications. Malanga also diverted some of the loan proceeds to fund another business that did not receive PPP loan funds.
In addition to the prison term, Judge Neals sentenced Malanga to three years of supervised release and ordered $1.8 million in restitution and forfeiture.