Due to COVID-19, many businesses received Paycheck Protection Program loans to keep workers paid, but one CEO has reportedly used the money for his own gain.
According to the New York Post, a new lawsuit alleges that the CEO of a large Wendy’s franchisee diverted $1 million in Paycheck Protection Program loans to buy a new house. “Andrew Levy, the CEO of the Starboard Group, which operates 101 Wendy’s locations, instructed former employee Sandi Adler to list some of his personal employees as corporate employees to pull off the scheme.”
Starboard Group, which oversees 3,200 employees, received $9 million from the federal relief program. A million of it went to a home for Andrew Levy in Montana.
According to Sandi Adler, Levy also told her to “lie to creditors, landlords, vendors, and suppliers, telling them the company had not received PPP funding and couldn’t meet its financial obligations.”
Sandi reveals that she was fired from the company on June 1 after making sexual harassment claims against another employee. She states that Levy ignored her complaints, and she is “seeking restitution for her lost wages and compensatory damages for the ‘pain and suffering’ caused by the company.”