Niagara County Men Sentenced in $1.9M COVID Relief Fraud Scheme

Two Niagara County men have been sentenced to federal prison for their roles in a conspiracy that defrauded COVID-19 relief programs of nearly $2 million, highlighting ongoing vulnerabilities in pandemic emergency assistance programs nearly four years after their implementation.

John L. Hutchins, 72, of Lewiston, and Roberto Soliman, 45, of Niagara Falls, were sentenced in U.S. District Court to 14 months and 20 months respectively after being convicted of conspiracy to commit wire fraud and bank fraud, according to the U.S. Attorney's Office for the Western District of New York.

Background and Context

The case centers on fraud committed against programs established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was passed in March 2020 to provide emergency financial assistance to businesses struggling during the pandemic. The legislation created several relief mechanisms, including the Economic Injury Disaster Loan (EIDL) program, the Paycheck Protection Program (PPP), and the Shuttered Venue Operators Grant (SVOG).

These programs were designed with rapid disbursement mechanisms to help businesses survive pandemic-related closures and restrictions, but the speed of implementation created opportunities for fraud that investigators continue to uncover nationwide.

Key Figures and Entities

According to court documents, Hutchins and Soliman operated through multiple corporate entities to submit fraudulent applications. The companies involved included Rapids Theatre Niagara Falls, USA, Inc.; 1711 Main, LLC; Bear Creek Entertainment, LLC; Hutch Enterprises, LLC; The Hutchins Agency, LLC—all owned by Hutchins—and CWE Entertainment, Corp., owned by Soliman.

Prosecutors say the conspiracy ran from March 2020 through March 2024, during which the defendants submitted applications containing false revenue and expense figures to obtain funds they were not entitled to receive.

Legal and Financial Mechanisms

The fraud scheme exploited multiple relief programs simultaneously. Between March and August 2020, the defendants obtained $779,500 in Economic Injury Disaster Loans, $989,905 in SVOG funds, and two PPP loans totaling nearly $116,000, according to the U.S. Attorney's Office.

The applications allegedly contained fabricated financial information designed to meet eligibility requirements while overstating the businesses' needs and expenses. The Small Business Administration has since implemented enhanced verification measures for these programs.

International Implications and Policy Response

While this case is localized to Western New York, it reflects a broader pattern of COVID-19 relief fraud that has prompted congressional oversight calls for enhanced oversight of emergency spending programs. The U.S. Department of Justice has made pandemic-related fraud a priority, establishing dedicated task forces to investigate and prosecute such cases nationwide.

Policy experts argue that the Hutchins-Soliman case demonstrates the need for more robust post-disbursement verification systems for future emergency programs, particularly as debates continue about preparing for potential future pandemics or economic crises.

Sources

This report draws on court filings and statements from the U.S. Attorney's Office for the Western District of New York, public records from the Small Business Administration, and legislative documents related to the CARES Act.