Jan. 16—A New Mexico business owner this week agreed to pay $3.2 million to resolve an allegation he misused COVID-19 relief funding.
Leonard Vandenberg applied for and received three Economic Injury Disaster Loans totaling $2.8 million for his businesses, according to the U.S. Attorney's Office for the District of New Mexico.
The loan program was expanded under the Coronavirus Aid, Relief and Economic Security Act to help businesses avoid economic injury during the pandemic. However, federal prosecutors said that Vandenberg moved the majority of the money into his personal investment accounts.
Vandenberg owns three businesses: Corclyn Enterprises in Portales, SDGTEX Restaurants, which is also known as Something Different Grill, which has restaurants in Clovis, Portales and Lubbock, Texas, and LCV Real Estate, according to the spokesperson for the U.S. Attorney's Office.
Efforts to reach Vandenberg by phone were not successful.
There was no criminal case linked to the investigation. The spokesperson said that the settlement was the result of a civil investigation and there was no corresponding civil case.
As part of the settlement, Vandenberg agreed to pay nearly $3.3 million, including $2.7 million in restitution and not seek any assistance or support or participate in any Small Business Administration program for five years, according to the U.S. Attorney's Office.