Rochester man pleads guilty to CARES Act fraud, possession of child porn

CONCORD - A Rochester man pleaded guilty today in federal court to fraud and identity theft related to his fraudulent applications for CARES Act loans and to possession of child sexual abuse material, the U.S. Attorneys has announced.

Heath Gauthier, 48, pleaded guilty to wire fraud, attempted wire fraud, aggravated identity theft, and possession of child pornography. He was charged with wire fraud and identity theft on Feb. 15, 2023, and possession of child pornography on Aug. 2.

Between February 2020 and March 2021, Gauthier fraudulently applied for more than a dozen loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs. He applied for loans for non-existent companies and used the identities of more than 10 deceased individuals in his applications, listing them in some applications as owners or employees of the fictitious companies.

Gauthier also submitted false documents, including fabricated tax documents and counterfeit driver's licenses, in support of the applications. In total the indictment alleges that Gauthier applied for more than $1 million in CARES Act loan funds.

He was arrested on Feb. 16, 2023, and investigators executed a search warrant on his residence, where they seized and later searched Gauthier's electronic devices. During the search, investigators discovered more than 1,500 files that contained child sexual abuse material.

The charging statutes provide a sentence of no greater than 20 years in prison for wire fraud and aggravated identity theft and no greater than 10 years in prison for possession of child pornography. The identity theft charge carries a mandatory minimum sentence of two years and, if a defendant has a qualifying prior offense, the child pornography charge carries a mandatory minimum sentence of 10 years.

Gauthier also faces at least five years of supervised release, and restitution in the amount of at least $199,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Sentencing is set for May 30.