BUFFALO, N.Y. — The owner of the Rapids Theatre in Niagara Falls has pleaded guilty to defrauding federal COVID-19 relief programs out of more than $1.8 million, the U.S. Attorney’s Office for the Western District of New York announced Thursday.
John L. Hutchins, 71, of Lewiston, admitted in federal court to conspiracy to commit wire fraud and bank fraud, charges that carry a maximum penalty of 30 years in prison and a $1 million fine.
According to prosecutors, between March 2020 and March 2024, Hutchins conspired with co-defendant Roberto Soliman to file fraudulent applications for loans under the Economic Injury Disaster Loan (EIDL), the Paycheck Protection Program (PPP), and the Shuttered Venue Operators Grant (SVOG). These programs were part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, designed to assist businesses struggling due to the pandemic.
Hutchins and Soliman falsely reported revenue and expenses for multiple businesses to obtain the loans, including Rapids Theatre Niagara Falls, USA, Inc., and several other entities owned by Hutchins.
Between March and August 2020, the pair secured five EIDL loans totaling $779,500. They also received $989,905 in SVOG funding and two PPP loans totaling $115,978 from Bank on Buffalo and Northwest Bank.
Assistant U.S. Attorneys Paul E. Bonanno and Douglas A.C. Penrose are prosecuting the case.
Hutchins now faces sentencing before U.S. District Judge Meredith A. Vacca, with a potential decades-long prison term and significant financial penalties.
Key Points
- John L. Hutchins, 71, pleaded guilty to conspiracy to commit wire fraud and bank fraud.
- He and a co-defendant fraudulently obtained over $1.8 million in COVID-19 relief funds.
- Hutchins faces up to 30 years in prison and a $1 million fine.
