The Locust Valley business owner who owns Bayville Adventure Park pleaded guilty Thursday to disaster relief fraud and wire fraud, admitting in federal court in Central Islip that he received $3.2 million in COVID-19 disaster funds by lying in online loan applications.
Donald Finley, who also owned the now-defunct Jekyll & Hyde theme restaurant in Manhattan, told U.S. Magistrate Arlene R. Lindsay that he inflated the payroll of his business entities in order to obtain additional funds. He also admitted to taking loans even though he knew his businesses were ineligible.
Finley used the money for personal use, including buying a home in Nantucket, Mass., in February 2021, prosecutors said.
“I am deeply remorseful for my conduct,” Finley, 61, told Lindsay.
According to court documents, Finley fraudulently applied for and received 29 Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDLP) loans worth approximately $3.2 million of dollars).
“Finley has admitted to misappropriating millions of dollars in COVID-19 disaster relief funds to finance his personal expenses, including the purchase of a home on Nantucket,” said US Attorney Breon Peace of the Eastern District of New York. “This office will continue to investigate and prosecute those, like the defendant, who shamelessly steal from government programs meant for struggling small businesses and families during the pandemic.”
Finley faces up to 30 years in prison if convicted. He can also be ordered to pay more than $3.2 million in restitution and a fine of up to $1.25 million.
Finley is scheduled to appear in court for sentencing before U.S. District Judge Joan Azrack on Nov. 8. Lindsay allowed Finley out of court on $500,000 unsecured bail.
Finley’s attorney, Christopher Ferguson, declined to comment after Thursday’s hearing.
Finley told Newsday in 2013 that he had bought a Bayville amusement park in 2004 and then tore it down because it was in “terrible disrepair.”
He said he opened the current amusement park in the fall of 2006.
Bayville Adventure Park is also home to Bayville Scream Park and Bayville Winter Wonderland.
“We’ve always wanted to open a haunted attraction, but it’s really hard to find good locations for it because it’s such a seasonal business,” he said in 2013. “I’ve been looking for a long time and this made a lot of sense. Because it could be so much more than just haunted attractions.”
Thomas Fattorusso, special agent in charge of the Internal Revenue Service’s New York field office, said criminals often see disaster relief programs as opportunities for exploitation.
“While he may be the owner of an amusement park meant to bring joy, with his guilty plea and pending sentencing, Finley may be facing a future he may find far less pleasant,” Fattorusso said.
Congress created the PPP and the EIDLP as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 to provide emergency financial assistance to businesses affected by the economic shutdown caused by due to the COVID-19 pandemic.
The Locust Valley business owner who owns Bayville Adventure Park pleaded guilty Thursday to disaster relief fraud and wire fraud, admitting in federal court in Central Islip that he received $3.2 million in COVID-19 disaster funds by lying in online loan applications.
Donald Finley, who also owned the now-defunct Jekyll & Hyde theme restaurant in Manhattan, told U.S. Magistrate Arlene R. Lindsay that he inflated the payroll of his business entities to obtain additional funds. He also admitted to taking loans even though he knew his businesses were ineligible.
Finley used the money for personal use, including buying a home in Nantucket, Mass., in February 2021, prosecutors said.
According to court documents, Finley fraudulently applied for and received 29 Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDLP) loans worth approximately $3.2 million of dollars).
“Finley has admitted to misappropriating millions of dollars in COVID-19 disaster relief funds to finance his personal expenses, including the purchase of a home on Nantucket,” said US Attorney Breon Peace of the Eastern District of New York. “This office will continue to investigate and prosecute those, like the defendant, who shamelessly steal from government programs meant for struggling small businesses and families during the pandemic.”
Finley faces up to 30 years in prison if convicted. He can also be ordered to pay more than $3.2 million in restitution and a fine of up to $1.25 million.
Finley is scheduled to appear in court for sentencing before U.S. District Judge Joan Azrack on Nov. 8. Lindsay allowed Finley out of court on $500,000 unsecured bail.
Finley’s attorney, Christopher Ferguson, declined to comment after Thursday’s hearing.
Finley told Newsday in 2013 that he had bought a Bayville amusement park in 2004 and then tore it down because it was in “terrible disrepair.”
He said he opened the current amusement park in the fall of 2006.
Bayville Adventure Park is also home to Bayville Scream Park and Bayville Winter Wonderland.
“We’ve always wanted to open a haunted attraction, but it’s really hard to find good locations for it because it’s such a seasonal business,” he said in 2013. “I’ve been looking for a long time and this made a lot of sense because it could be very more than just haunted attractions.”
Thomas Fattorusso, special agent in charge of the Internal Revenue Service’s New York field office, said criminals often see disaster relief programs as opportunities for exploitation.
“While he may be the owner of an amusement park meant to bring joy, with his guilty plea and pending sentencing, Finley may be facing a future he may find far less pleasant,” Fattorusso said.
Congress created the PPP and the EIDLP as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 to provide emergency financial assistance to businesses affected by the economic shutdown caused by due to the COVID-19 pandemic.
