Former Saratoga Springs restaurant owner admits to PPP fraud charges

Dec. 13—ALBANY — A former Saratoga Springs restaurateur has pleaded guilty to defrauding a loan program meant to assist businesses during the COVID-19 pandemic, officials said.

Scott Solomon, 37, of Albany, was the former owner of popular Saratoga Saratoga Springs restaurants Siro's, near Saratoga Race Course, and Pig 'N Whistle restaurant, which was briefly open on Broadway.

Solomon pled guilty to two counts of bank fraud and will face up to 30 years in prison, along with up to five years of post-imprisonment supervised release, when he is sentenced April 30 by U.S. District Judge Gary L. Sharpe. Solomon has also agreed to pay $163,993 in restitution.

U.S. Attorney Carla B. Freedman and Special Agent in Charge Craig L. Tremaroli, of the FBI's Albany Field Office, made the announcement about Solomon's case Monday. The case was investigated by the FBI, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.

"Solomon admitted that in 2020, he fraudulently applied for and obtained Paycheck Protection Program (PPP) loans for two restaurants in Saratoga Springs that he had once operated," the announcement from the U.S. Attorney's Office stated.

Solomon submitted false and forged tax documents as part of the loan applications, and he admitted to lying about each restaurant's number of employees and payroll in his applications. At the time he applied for the PPP loans, neither restaurant was operational. He also used the $163,993 he received in ways that were not allowed by the PPP program.

Solomon fraudulently obtained forgiveness for one of the loans for $87,500 by falsely telling the lender he had used most of the loans funds for payrolls, according to the U.S. Attorney's Office.

Separately, Solomon was previously arrested by state police in September 2020, after an investigation into misappropriation of money from Albany Mayor Kathy Sheehan's election campaign found, while Solomon was a campaign aide for her, he used a campaign credit card on more than $20,000 worth of personal purchases.

Solomon was also arrested in May 2021 on charges of forging paperwork in an effort to get a city permit to open Siro's the previous summer. At the time, police said falsified paperwork included insurance documents and a State Liquor Authority license.

PPP loans were issued by financial institutions in 2020 and 2021 to be used by businesses only for certain expenses, such as payroll costs, interest on mortgages, rent and utilities. The COVID-19 Fraud Enforcement Task Force was established in May 2021.

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