“Health Club Owner Indicted for $1 Million Covid Relief Fraud, Facing Severe Consequences”

Nashua Health Club Owner Indicted for Million Dollar Covid Relief Fraud: Faked Payroll and Inflated Company Size

Nashua Health Club Owner Indicted for Million Dollar Covid Relief Fraud: Faked Payroll and Inflated Company Size

Matthew Dispensa, the owner of Gateway Hills Health Club in Nashua, is facing indictment in federal court for attempting to fraudulently obtain over $1 million in CARES Act funding. The U.S. Attorney’s office alleges that Dispensa applied for relief funds for two different corporate entities, though he had only one gym, and provided false documents to inflate his company’s size and payroll.

Between 2020 and 2022, Dispensa allegedly sought four Paycheck Protection Program loans totaling over $413,000 and two Economic Injury and Disaster Loans totaling $650,000. He reportedly misused some of the loan proceeds, wiring $100,000 of one PPP loan’s proceeds to a personal brokerage account to purchase stocks, including Tesla stock.

This is the third Covid fraud-related case in the U.S. District Court in New Hampshire, and the indictment charges Dispensa with four counts of bank fraud, two counts of attempted wire fraud, and two counts of money laundering. If convicted, Dispensa could face up to 30 years in prison and a fine of $1 million for bank fraud, up to 20 years in prison and a fine of $250,000 or twice the gross gain or loss for attempted wire fraud, and up to 10 years in prison and a fine of twice the amount illegally gained for money laundering.

The case highlights the need for strict oversight and accountability in the distribution of Covid relief funds, as well as the serious consequences of attempting to fraudulently obtain them.