David Epstein, 46, of Owings Mills has pleaded guilty to wire fraud after submitting fraudulent CARES Act loan applications that netted him over $1.3 million in relief funds.

According to his plea agreement, Epstein orchestrated a scheme between May 2020 and February 2021 to defraud multiple financial institutions and the Small Business Administration. He submitted false applications for his temporary staffing company, PEI Staffing, through both the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan program.

Prosecutors say Epstein submitted misleading PPP applications containing false information about his company’s employees and wages. He also altered bank statements to support his fraudulent claims.

After receiving $1.3 million in PPP funds, Epstein quickly transferred the money to personal accounts and used it for unauthorized expenses. These included purchasing a 2019 Mercedes-Benz for $110,000, spending $138,000 on home renovations and a pool installation, paying $100,000 toward an insurance settlement, and settling a $344,000 debt related to funds he had previously misappropriated from a business partner.

The defendant also used the relief money for personal travel to a luxury golf resort and attempted to conceal the loan by adding individuals he owed money to his company’s payroll, making them appear as employees when they were not.

Epstein faces up to 20 years in prison and three years of supervised release. His sentencing is scheduled for January 14, 2025, before U.S. District Judge Richard D. Bennett.