A Pacific Beach businessman was sentenced on Jan. 21 to 18 months in federal prison for misuse of COVID-19 funds and was ordered to pay $2.9 million back in restitution.

Thomas H. Zolezzi, 62, was allowed to remain free on a $50,000 bond until he self surrenders to prison on March 21, according to court records.

U.S. District Court Judge Anthony Battaglia sentenced him on Jan. 21 after allowing him to remain free since November 2023 after he pleaded guilty to wire fraud.

Zolezzi operated a business known as Casamar Clean Oceans Inc. when he applied for three loans to cover his payroll costs. This money was intended to help those affected by the COVID-19 pandemic.

The U.S. Attorney’s office said Zolezzi falsely overstated his number of employees, his payroll amount, and his annual revenue to obtain the loans.

The U.S. Attorney’s office said the funds were instead used to pay his personal expenses, but the funds were supposed to be used for workers, families, small businesses, and others who were hit hard by COVID-19.

It was called the Coronavirus Aid Relief and Economic Security Act (CARES Act) and was enacted on March 27, 2020. The legislation authorized the Small Business Administration to guarantee loans under a new loan program titled the Paycheck Protection Program (PPP).

The restitution order specifies that Zolezzi pay $2,238,910 to Capital Plus Financial and $700,884 to the Small Business Administration.

Zolezzi’s attorney told the judge his client was a former tuna boat captain for many years and had donated money and his time to community projects in Point Loma.