Andrew Levy is the CEO of Starboard Group, a company that owns and operates over 100 Wendy’s franchises, has allegedly used $1 million of the Paycheck Protection loans to purchase a home.
Starboard was awarded $9 million from the Small Business Administration and allegedly used $1 million of that loan to purchase a home. Levy allegedly told Sandi Adler, a former employee, to list some of Levy’s personal employees as employees of Starboard.
“The effect of this, in view of the PPP funding, was to defraud the United States and the Small Business Administration,” the complaint said.
Starboard employees 3,200 employees over 7 states. The Paycheck Protection program was designed to keep employees on the payroll of their employers.
The suit also claims that Levy instructed Adler to lie to creditors, landlords, and suppliers claiming they never got the PPP funding. Adler also alleges that she was terminated on June 1 after complaining to her supervisor, Kevin Holbrook. Alder also alleges that Holbrook sexually harassed her while she worked for him.
Adler is looking for restitution for her lost wages and compensatory damages for “pain and suffering” caused by Starboard.