Island Seafood owners sentenced to prison for Covid relief fund fraud

On 5 May, 2023, the owners of a Tallahassee, Florida, U.S.A.-based Island Seafood Co. restaurant were sentenced to prison terms after being found guilty of illegally collecting more than USD 4.8 million (EUR 4.3 million) in Covid relief funds.

Wilbert Stanley and Felicia Stanley pleaded guilty to one count of wire fraud conspiracy, money laundering conspiracy, and false statements in relation to the theft of Covid-19 pandemic relief funds, the U.S. Department of Justice reported, according to the Tallahassee Democrat.

Wilbert Stanley will serve 40 months in federal prison, and Felicia Stanley will serve a two-year prison sentence, followed by three years of supervised release. The couple also were ordered to pay restitution to the U.S. Small Business Adminsitration of USD 2.9 million (EUR 2.6 million). 

“The theft of any amount of taxpayer funds is inexcusable, but stealing over USD 4.8 million dollars from honest, hardworking Americans truly in need of pandemic relief is simply abhorrent,” U.S. Attorney Jason R. Coody said in a press release. “Today’s sentences both punish the defendants’ criminal conduct and should serve as a significant deterrent to others who would steal from their fellow citizens to unlawfully enrich themselves. With our law enforcement partners, we remain committed to investigating and vigorously prosecuting those who engage in acts of covid-related fraud.”

Wilbert Stanley is listed as a registered agent on more than 20 Florida-based businesses in addition to Island Seafood, the Florida Department of State reported. 

The Department of Justice reported the couple applied for more than USD 7 million (EUR 6.3 million) through the U.S. Small Business Administration, the Paycheck Protection Program, Economic Injury Disaster Loans program, Shuttered Venue Operators Grants (SVOG), and other loan programs between 1 March, 2020, and 1 September, 2021. The couple also filled 20 PPP applications and three SVOGs.

On most of their applications, the couple did not file under their names.

“These sentences demonstrate that those that steal taxpayer dollars will face the consequences for their actions,” U.S. Small Business Administration Office of Inspector General Eastern Region Special Agent Amaleka Brathwaite-McCall said. “I want to thank the U.S. Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”

Photo courtesy of Island Seafood Co. Florida/Facebook