A Pacific Beach man pleaded guilty on Nov. 16 to committing fraud in obtaining several million dollars from funds that were intended to help those affected by the COVID-19 pandemic.

Thomas Zolezzi, 61, operated a business known as Casamar Clean Oceans Inc. from his home address in Pacific Beach when he applied for three loans to cover payroll costs, according to the U.S. Attorney’s office.

Zolezzi has agreed to pay $700,884.75 back to the Small Business Administration and $2,238,910.24 to Capital Plus Financial, according to the U.S. Attorney’s office.

Although Zolezzi could receive a maximum sentence of 20 years in federal prison, the emphasis will probably be focused on whether he can pay the full restitution figures back.

Sentencing is set for Feb. 5, 2024. He remains free on a $50,000 bond.

Zolezzi pleaded guilty to one count of wire fraud in which he “knowingly transmitted” an application in interstate commerce for a Payroll Protection Program (PPP) loan on May 14, 2020.

The charge says he used the funds “to pay for his personal expenses instead of paying the salary of his employees.” The U.S. Attorney’s office said Zolezzi falsely overstated the number of his employees, the payroll amount, and his annual revenue to obtain the loans.

In his plea agreement, Zolezzi admitted he submitted five loan applications containing false statements to trick lenders into providing the relief funds, according to the U.S. Attorney’s office.

The Coronavirus Aid, Relief, & Economic Security Act, known as the CARES Act, was enacted on March 27, 2020, to provide over $2 trillion of economic relief to workers, families, small businesses, industry sectors, and other levels of government that were hit hard by COVID-19. The CARES Act authorized the Small Business Administration to temporarily guarantee loans under a new loan program called the PPP.