DeNaples initially made his fortune operating landfill and auto parts businesses. Several people, including James Osticco, the reputed underboss of the Bufalino crime family, were charged with witness tampering at the trial. When DeNaples applied for a casino license in , his previous conviction was overlooked because it was more than 15 years old.
But his connections to the Bufalino family soon resurfaced. It is extremely unusual for a small bank like FNCB to issue a loan of that size because of the risk involved, analysts told the Inquirer. The Main Street program was designed to make lenders less nervous about issuing loans to struggling businesses. Those include prohibiting financial institutions from issuing taxpayer-backed loans to companies owned by their directors. Name, email and comment will be stored in our database.
DeNaples did have on his record a no-contest plea to charges that he and three others bilked the federal government out of recovery funds following Tropical Storm Agnes.
Those charges were eventually dropped in a deal that required DeNaples to pass control of the casino to his adult daughter, Lisa DeNaples. But Louis DeNaples was allowed to continue advising the casino. Over the years, DeNaples has also repeatedly petitioned state gaming regulators to allow businesses he owns to provide services such as waste disposal or vehicle repairs to the Mount Airy resort. Those requests have been rejected under the argument that his deal to hand off the casino barred him from profiting in any way from the resort.
Pennsylvania Gaming Control Board spokesman Doug Harbach declined to address whether granting the loan might have also violated those terms, and what sanctions would apply if it did. The businessman, standing between his daughter Lisa and State Sen.
Mario Scavello, a Republican whose district includes the casino, cut the ribbon at the event, seen in an online video by the Pocono Record newspaper. Loan standards are also more selective, requiring participants to have been in solid financial shape with a manageable existing debt load before the pandemic. The idea was to make banks less nervous about lending during what was expected to be a long period of tight credit.
Despite that opportunity to offload risk, few banks have so far signed up to participate in the program. Banks tend to make loans of no more than around 1.
Small Business Administration regulations that have long governed loans made by banks using federal funds include a provision prohibiting banks from lending to other businesses owned by their directors, including ones such as DeNaples Jr. Since PPP loans are made under the same terms for all borrowers, there was no chance of favoring insiders, the agency reasoned.
When the Main Street loans started up, officials largely adopted the modified SBA rules for that program as well, including the relaxation of insider-lending rules designed around PPP. The rules set limits on how much a bank can lend to insiders including non-executive directors, or to their other businesses.
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