Addison man sentenced to 6½ years for COVID-era loan fraud

An Addison man was sentenced to 6½ years in federal prison after pleading guilty to fraudulently obtaining more than $3.3 million in COVID-era small business loans.

Francesco DiStefano, 29, pleaded guilty last year to wire fraud along with a co-conspirator from California who is awaiting sentencing.

Federal prosecutors said the pair obtained the loans through the Coronavirus Aid, Relief and Economic Security Act. The CARES Act was one of the first economic stimulus packages approved under the first Trump administration in the wake of the COVID-19 pandemic and was rife with fraud, according to the U.S. Government Accountability Office.

Authorities said DiStefano applied for the loans through a technology company he owned, but the applications contained “numerous false statements and misrepresentations regarding the companies’ operations, including the number of employees, gross revenues and payroll expenses.”

Prosecutors said DiStefano used the funds he received to purchase high-end sports cars including, a Lamborghini Huracan, Maserati Ghibli, Land Rover Evoque SE and Porsche 911. All were seized by law enforcement and forfeited to the government.

According to court records, DiStefano also defrauded Illinois out of $37,500 in unemployment benefits during the same time period.