Crime & Safety

NASA Executive Pleads Guilty To $285K In PPP Loan Fraud

A Leesburg man faces up to 30 years in prison after he pleaded guilty to fraudulently receiving PPP funds intended for small businesses.

LEESBURG, VA — A NASA employee faces up to 30 years in prison for fraudulently applying for more than $280,000 in COVID-19 relief loans. The man, Andrew Tezna of Leesburg, pleaded guilty to bank fraud charges in federal court.

Department of Justice officials said Tezna used the funds to pay for a pool, minivan, new car, and dog breeder.

"Despite holding a senior executive position at NASA, the defendant applied for over $350,000 in fraudulent loans and benefits," said Raj Parekh, acting U.S. attorney for the eastern district of Virginia. "In doing so, he essentially treated COVID-19 relief programs as a personal piggy bank, using funds intended to provide pandemic relief for small businesses and the unemployed."

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Court documents claimed that Tezna submitted several applications for loans intended for small businesses affected by the coronavirus pandemic. Prosecutors also believed that Tezna received unemployment funds that he did not qualify for and submitted fraudulent payroll forms to the IRS to support his loan applications.

In court, Tezna also admitted to filing a false financial disclosure report to his employers at NASA. Tezna received a total of more than $285,000 in Paycheck Protection Program (PPP) loans and unemployment benefits, according to the news release.

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Mark Zielinski is a special agent with the office of NASA's inspector general. "As a NASA senior executive, the Agency placed a great deal of trust in Tezna," he said. "Taking advantage of the CARES Act to fraudulently obtain PPP loans not only violated the Agency’s trust, but the trust of American people that sought assistance for the legitimate needs of their struggling businesses."

Tezna is scheduled to be sentenced on July 16. He faces a maximum of 30 years in prison, but the Department of Justice noted that sentences are typically less than the maximum penalties.

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