Blotnick applied for 21 loans among 13 different lenders between April 2020 and May 2021, receiving $4,681,796 of the $6,889,089 he attempted obtain, according to court papers.
After getting the money, Blotnick moved it into brokerage accounts and then lost $3 million of it in failed stock trades, prosecutors said.
Blotnick, who also has a home in New York, faces a fine and years in prison when he is sentenced March 1, 2022.
Blotnick’s businesses were incorporated in Delaware with offices in New York City — one was called BSC Opportunistic and the other Brattle GP, according to charging documents. Court papers don’t name the banks that were victimized, but noted one is based in Utah and one is based in New York City.
Gregory J. Blotnick, of Florida, pleaded guilty on Wednesday in federal court in Newark to wire fraud and money laundering, the U.S. Attorney’s Office for New Jersey said in a statement.
The forgivable small business loans were offered by the federal government to meet payroll expenses as well as cover business’ mortgage, rents and utilities.
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Jeff Goldman may be reached at email@example.com.