An Oxford couple has paid more than $169,000 to resolve allegations that they used Economic Injury Disaster Loan proceeds for real estate transactions in Florida.

Janine E. Carbonaro and Gerard Carbonaro have paid $169,563.60 to resolve allegations that they fraudulently misspent $109,000 in COVID-related EIDL small business loans and advances, according to a statement from the U.S. attorney’s office.

According to the statement, Gerard Carbonaro applied for an EIDL loan and advance on April 7, 2020, on behalf of Janine E. Carbonaro, sole proprietor of a hair salon in Monroe, Hair Attraction Design Team.

The loan documents required Janine E. Carbonaro to “use all the proceeds of this Loan solely as working capital to alleviate the economic injury” caused by COVID-19. Rather than using the proceeds as working capital for the salon, the Carbonaros used the proceeds to pay off the mortgage of a residential property in Florida and to purchase an additional residential property in Florida for personal investment purposes, the statement said.

In addition to repaying the EIDL loan and advance with interest and penalties as part of a civil settlement agreement with the government, the Carbonaros also agreed to withdraw a pending application for a loan increase.