A Florida man faces federal charges and up to 30 years in prison. Prosecutors say he committed wire fraud and identity theft to secure more than $1 million in emergency loans. He allegedly took the money straight to a casino.

When COVID shutdowns threatened small businesses nationwide, the federal government rolled out Economic Injury Disaster Loans. The program aimed to keep mom-and-pop shops afloat. Stephen L. Gurba of Belleair, Florida, decided to tap into that money in spring 2020.

Gurba applied for loans on behalf of Big Red Express Trucking and Zenith Express. But investigators say he did it in the sketchiest way possible.

Using a dead man’s name to unlock federal funds

According to prosecutors, Gurba used his deceased business partner’s identity to obtain the loans.

“Gurba also used his deceased business partner’s name and forged his signature on the EIDL loan authorization agreements and loan notes he submitted to the Small Business Administration (SBA). During post-loan related communications with the SBA, Gurba continued to impersonate his deceased business partner. As a result of his fraudulent scheme, Gurba induced the SBA to approve and fund the Big Red and Zenith EIDL loans.” — U.S. Attorney’s Office said.

After securing the first loan, Gurba allegedly decided to roll the dice again. He applied for a Paycheck Protection Program loan totaling $955,448.75.

He told authorities the money would cover payroll, rent, and mortgages for his LLCs. Investigators say that was not true. Instead, they allege he spent the funds “at a casino, to enrich himself and family members, pay off unrelated business debts, and other impermissible expenses.”

The 69-year-old faces a maximum penalty of 20 years in prison on each wire fraud count (2 counts), up to 30 years in prison on the false statement charge (one count), and a two-year mandatory minimum on each of the aggravated identity theft counts (2 counts).