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SBA Obtains $256K Judgment Against Fraudulent Medico
In August 2012, the Small Business Administration obtained a judgment of nearly $256,000 against a New Jersey podiatrist who misrepresented his financial situation when applying for an SBA-guaranteed loan. The podiatrist, Dr. Anthony J. Enrico, Jr., later defaulted on that loan.
The judgment, issued by Administrative Law Judge Barbara A. Gunning, found that when Enrico applied for an SBA-guaranteed loan from PNC bank, he failed to mention that CIT Financial was suing him and his company, Foot & Ankle Institute of North Jersey, PA. Later, before PNC disbursed the loan, Enrico did not disclose that CIT had won a judgment of nearly $900,000 against him. Enrico had discharged his debt to PNC in bankruptcy, but had neglected to name SBA as a creditor in his bankruptcy filing. These fraudulent acts formed the basis of SBA’s judgment against Enrico.
The total judgment against Enrico and the Institute for Foot & Ankle Medicine PA, Foot & Ankle Institute of North Jersey PA’s, successor, includes damages of $242,793.98 and a civil penalty in the amount of $13,000. The judgment, which Gunning rendered pursuant to the Program Fraud Civil Remedies Act, will be paid into the general revenues of the United States. Enrico did not contest the lawsuit.