Former California mayor indicted in PPP loan fraud, faces 30-year sentence
Anthony Silva, once the mayor of Stockton, is facing federal charges of bank fraud and aggravated identity theft. Prosecutors allege Silva lied to obtain and later forgive a pandemic-era $17,000 Paycheck Protection Program (PPP) loan for his now-defunct business, Indoor Adventures LLC.
According to the indictment filed in U.S. District Court for the Eastern District of California, Silva used another person's name to hide his majority ownership in the business—an apparent attempt to bypass federal rules that bar applicants with recent felony convictions. The loan was approved in April 2020 and later forgiven, wiping out the debt. The alleged scheme ran through September 2021.
If convicted, Silva could face up to 30 years in prison, a $1 million fine for bank fraud, a mandatory two-year sentence, and a $250,000 fine for identity theft.
Silva's attorney, Kresta Daly, could not immediately be reached for comment.
Here's what to know about Silva and the controversies he's faced over the years.
What was the PPP loan scandal, and what is Silva accused of doing?
The PPP loan program, created under the 2020 CARES Act, was designed to help small businesses retain employees during the COVID-19 pandemic. The U.S. Small Business Administration fully guaranteed loans and could be forgiven if spent on payroll, rent, or other eligible expenses
Silva's application reportedly misrepresented ownership and business operations to qualify for the loan, and by using another person's identity and submitting fraudulent documentation, he circumvented rules that would have disqualified him due to his prior felony conviction, prosecutors allege. Once the loan was approved, Silva applied for forgiveness under the SBA's Form 3508 process, which allowed borrowers to eliminate their debt if they met specific spending criteria.
The Department of Justice has since launched a nationwide crackdown on COVID-19 relief fraud, forming a task force in 2021 that has brought thousands of cases against business owners, public officials, and organized rings.
A history of scandal: Strip poker, embezzlement, and alcohol to minors
Silva's legal troubles are not new. His single term as Stockton mayor from 2013 to 2017 was controversial. In 2016, he was accused of hosting a strip poker game involving underage participants at a summer camp he ran. That same year, he faced allegations of providing alcohol to minors and embezzling funds from the Stockton Kids Club, a youth organization under his leadership. He eventually pleaded no contest to giving alcohol to a minor and was ordered to perform 40 hours of community service.
In 2019, Silva pleaded no contest to a felony conflict-of-interest charge stemming from financial misconduct during his time in office. The case centered on Silva's alleged misuse of public funds and his involvement in redirecting money from a city-supported nonprofit, the Stockton Kids Club, which he oversaw. Prosecutors accused Silva of re-directing $5,000 in public funds to benefit the organization while simultaneously serving as its CEO—violating California's conflict-of-interest laws. The conviction was later reduced to a misdemeanor and expunged in 2022.
Failed comebacks and continued political aspirations
Despite his checkered past, Silva has repeatedly tried to re-enter public office. Most recently, he ran for Stockton City Council District 2 in 2024 but failed to advance past the March primary, losing to Mariela Ponce and Waqar Rizvi.
Just days before the latest charges were filed, Silva appeared at a city council meeting to support Mayor Christina Fugazi and former Interim City Manager Steve Colangelo's reappointment. His presence raised eyebrows, given his legal and ethical controversies' history.
This article originally appeared on Palm Springs Desert Sun: Anthony Silva indicted in PPP loan fraud, faces 30-year sentence
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