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Press Release

Former Connecticut Resident Pays $154k to Resolve Allegations of Covid-Relief Loan Fraud

For Immediate Release
U.S. Attorney's Office, District of Connecticut

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that EDWARD MUNDAY, of Coventry, Vermont, a former resident of New Fairfield, Connecticut, has paid $154,200 to resolve allegations that he fraudulently used a substantial portion of a small business loan under the Coronavirus Aid, Relief and Economic Security (“CARES”) Act to purchase a second home in Vermont.

The CARES Act was enacted to provide emergency assistance to individuals, families, and businesses affected by the coronavirus pandemic.  Section 1110 authorized the Small Business Administration (“SBA”) to provide Economic Injury Disaster Loans (“EIDLs”) to help overcome the effects of the COVID-19 pandemic by providing working capital to eligible small businesses, including sole proprietors, to meet operating expenses.

On May 25, 2020, Munday applied for and later received an EIDL Loan as sole proprietor for EDM Services, his IT consulting business.  The loan documents required Munday to “use all the proceeds of this Loan solely as working capital to alleviate economic injury” caused by COVID-19.  In May 2021, Munday sought and later received an increase in his EIDL Loan for EDM Services and, on August 4, 2021, again agreed to “use all proceeds of this Loan solely as working capital to alleviate economic injury” caused by COVID-19.

The government contends that Munday did not use all the proceeds of the EIDL as working capital for EDM Services.  Instead, he used a substantial portion of it to purchase a second home in Coventry, Vermont.  To resolve these allegations, Munday agreed to pay $104,200 in restitution, and a $50,000 penalty.

This investigation was conducted by the Federal Bureau of Investigation.  This matter was handled by Assistant U.S. Attorneys Sarah Gruber and Richard M. Molot, with the assistance of the SBA’s Office of General Counsel.

Individuals with information about allegations of attempted fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at:

Updated May 29, 2024

Disaster Fraud
Financial Fraud