BUFFALO — The federal fraud trial of Lewiston businessman John Hutchins, and an associate, is set for jury selection to begin in August.
In the meantime, Hutchins landmark entertainment venue, the Rapids Theatre, remains open for bookings despite a brief closure sparked by an unpaid utility bill.
U.S. District Court Judge John Sinatra has set a jury trial date of August 12 and noted in his scheduling order that, “This is a date-certain trial that will not be adjourned.”
In his order, Sinatra also urged federal prosecutors to “set a deadline” for any potential plea deal in the case prior to the start of jury selection.
Hutchins and his former chief financial officer, Roberto Soliman, are accused of defrauding two Covid-related loan programs out of more $750,000. The pair were indicted by a federal grand jury in March 2022.
Both Hutchins, 68, and Soliman, 39, of Niagara Falls, have pleaded not guilty to charges of conspiracy to commit wire fraud and bank fraud. Hutchins also pleaded not guilty to a count of making a false statement, while Soliman pleaded not guilty to a count of money laundering.
The charges carry a maximum penalty of 30 years in prison. Both men are currently free on conditions.
Federal prosecutors, in the office of the U.S. Attorney for the Western District of New York, accuse Hutchins and Soliman of filing fraudulent loan applications under both the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP). The loans were designed to provide emergency financial assistance as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Hutchins and Soliman applied for loans for the Rapids Theatre, Bear Creek Entertainment LLC, a resort and conference center, Hutch Enterprises LLC, the Hutchins Agency LLC and CWE Entertainment, Corp. CWE is owned and controlled by Soliman, while the other businesses are owned by Hutchins.
Between March and August 2020, prosecutors said Hutchins and Soliman received four Economic Injury Disaster Loans totaling $749,500.00. The indictment against them charges that Hutchins and Soliman submitted false revenue and expense figures for the businesses to support their loan applications.
Federal investigators with the FBI and IRS said Hutchins and Soliman used the loan proceeds, not for their businesses but for their own personal expenses. Hutchins is accused of making payments on residential properties in North Tonawanda and Lewiston, on a 2020 BMW and a 2020 Cadillac, as well as paying homeowner association fees on a Florida condominium.
Hutchins and Soliman also applied for and received a Paycheck Protection Program loan totaling $74,838.
In November 2020, Hutchins is accused of making a false statements to FBI special agents and to an investigator in the U.S. Attorney’s Office. In those statements, Hutchins reportedly denied applying for, or authorizing anyone to apply for, any Economic Injury Disaster Loans or Paycheck Protection Program loans.
The businessman later claimed that he may have made or authorized a PPP loan application for the Rapids Theatre. Federal investigators claim that Hutchins used Soliman, who was, at that time, the chief financial officer for the Rapids Theatre, to launder the loan money to pay personal expenses.
Federal prosecutors have previously impounded $403,000 from Soliman’s personal checking account and the checking account of CWE Entertainment. Sources close to the case have said prosecutors are seeking the forfeiture of that cash as well as forfeiture of the Rapids, the Bear Creek resort, Hutchins’ Florida condo and his other residential properties.
The Rapids has continued to book a limited number of events and shows under the oversight of a court-appointed receiver.
Those bookings were temporarily halted when city inspectors issued a “cease and desist” order after the venue’s natural gas service was cut-off. City officials said Monday that order was lifted “once (natural) gas service (for heating) was re-established.”