Federal authorities have seized more than $1 million in pandemic relief money they say an Anchorage hotelier received by lying on applications for the funds.
Bob Gross is co-owner of Inlet Tower Hotel and Suites, a prominent beige and charcoal-colored 15-story building — one of the first two high-rises ever built in Anchorage — at the southwest corner of downtown Anchorage.
According to an FBI agent’s affidavit filed in court last month, Gross filed fraudulent applications for two types of federal CARES Act relief funds: the Economic Injury Disaster Loan program and the Payroll Protection Program.
The affidavit says two companies Gross controls received a total of $1,010,404 in fraudulently obtained funds.
Gross has not been charged with a crime in the case, but the move to seize the money indicates he is the target of a continuing investigation.
According to the affidavit, there were two main problems with Gross’s applications for pandemic relief, made in March and April of 2020, and again in January of 2021.
First, ownership stake in the company that controls the Inlet Tower — called IT, LLC — was split 50-50 between Gross and a Wasilla couple, Jack and Dawn Barrett. But when Gross couldn’t get the Barretts to sign off on the applications, he said he was the only owner, the affidavit says.
Secondly, another company split between Gross and the Barretts — Bistro IT, LLC — had been set up with the sole purpose of holding the liquor license for the PubHouse restaurant at Inlet Tower and does not have any employees, business expenses or income of its own, according to the affidavit. But the affidavit says Gross, unbeknownst to the Barretts, filed for pandemic relief for Bistro IT stating that the company had more than $1 million in annual revenue and 10 employees.
Gross’s companies should not have received the relief payments, the affidavit says.
Gross did not respond to an emailed request for comment or calls to his office at Inlet Tower.
Federal prosecutors would not comment on the case.
Meanwhile, Gross and the Barretts have been embroiled in civil litigation in state court and federal bankruptcy court over their business dealings related to Inlet Tower.
Casey Grove is host of Alaska News Nightly, a general assignment reporter and an editor at Alaska Public Media. Reach him at cgrove@alaskapublic.org. Read more about Casey here.
