A 72-year-old Upstate New York man has been sentenced to federal prison for orchestrating a scheme that defrauded COVID-19 relief programs of over $1.8 million using sham businesses. John L. Hutchins of Lewiston, NY, owner of Rapids Theatre in Niagara Falls, received 14 months imprisonment from U.S. District Judge Meredith A. Vacca. His co-defendant, Roberto Soliman, 45, of Niagara Falls, got 20 months for their roles in the conspiracy.
Both men must pay full restitution to the Small Business Administration (SBA) and affected banks. The fraud exploited programs under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, designed to aid businesses hit by the pandemic. From March 2020 to March 2024, they submitted false applications with fabricated revenue and expense data.
The Fraud Scheme Details
Hutchins and Soliman targeted three key relief initiatives: Economic Injury Disaster Loans (EIDL), Paycheck Protection Program (PPP) loans, and Shuttered Venue Operators Grants (SVOG). They used entities like Rapids Theatre, Niagara Falls Entertainment, Creek Entertainment, Hutch Enterprises, The Hutch Agency, 1711 Main, and CWE Entertainment Corp. Applications claimed nonexistent payrolls, revenues, and expenses to qualify for funds.
Successful payouts included $779,500 in EIDL funds, $989,905 in SVOG grants, and $115,978 in PPP loans between March and August 2020. The total haul exceeded $1.8 million, diverted from legitimate pandemic-struggling businesses. Prosecutors highlighted how the duo conspired with others to enrich themselves amid widespread economic hardship.
The case underscores ongoing enforcement against COVID-era fraud, with billions lost nationwide to similar scams. Upstate New York’s Western District has pursued numerous such prosecutions since 2020.
Court Proceedings and Guilty Pleas
Hutchins pleaded guilty in March 2025 to conspiracy to commit wire and bank fraud, facing up to 30 years and $1 million fine. Soliman entered his plea earlier. Sentencing occurred on January 20-22, 2026, in Buffalo federal court. Assistant U.S. Attorneys Paul E. Bonanno and Douglas A.C. Penrose handled prosecution.
Judge Vacca imposed the terms after reviewing evidence of deliberate deception. No additional fines beyond restitution were detailed publicly. Both face supervised release post-incarceration, though specifics remain undisclosed.
Official Statements on Sentencing
U.S. Attorney Trini E. Ross, via spokesperson Michael DiGiacomo, stated: “These defendants conspired with others to take advantage of government programs designed to assist struggling businesses during the COVID-19 epidemic. By submitting false and fraudulent applications, Hutchins and Soliman lined their own pockets, thereby depriving struggling businesses that were actually eligible for this money.”
Harry T. Chavis, Jr., Special Agent-in-Charge of IRS Criminal Investigation New York, added: “Hutchins and Soliman abused a system of benefits put in place specifically for businesses experiencing hardships. Instead of using the money legitimately, the pair stole nearly $2 million from the program while others still waited in line. Today’s sentencing means that each of these fraudsters will now face the punishment of their illicit, greedy behavior.”
Investigators from IRS-CI, SBA-OIG, and others credited the collaborative probe. The U.S. Attorney’s Office emphasized deterrence against exploiting crisis aid.
Background on Defendants and Businesses
John L. Hutchins operated Rapids Theatre, a Niagara Falls venue impacted by pandemic shutdowns. His portfolio included entertainment firms like Hutch Enterprises and The Hutch Agency. Roberto Soliman managed CWE Entertainment Corp. Despite real hardships in the sector, they falsified data for unentitled aid.
SVOG specifically aided performance venues shuttered by COVID restrictions. PPP and EIDL supported payroll and operations broadly. Fraudulent claims misrepresented business viability to secure approvals.
Broader Context of COVID Relief Fraud
The CARES Act disbursed over $4 trillion, including $800 billion+ in SBA loans and grants. Fraud losses topped $200 billion per estimates, with thousands prosecuted. Western District of New York cases include similar schemes, like a Little Valley man’s $1M fraud plea. Justice Department prioritizes recovery via restitution and forfeiture.
Upstate NY saw heightened scrutiny on entertainment and small business claims. This sentencing aligns with 2026 efforts under President Trump’s administration to claw back misused funds.
Impact and Enforcement Lessons
Victims include SBA, banks like those funding PPP, and displaced legitimate applicants. Restitution aims full recovery, though collection varies. Sentences reflect guidelines balancing fraud scale, pleas, and no prior records.
Authorities urge reporting via SBA hotline or IRS tips. Enhanced verification post-2020 reduced but didn’t eliminate abuse. This case highlights theater operators’ pandemic struggles twisted into crime.