Two individuals of Indian origin currently residing in the United States have admitted their guilt in a significant multi-million dollar fraud scheme related to acquiring loans through an economic assistance program initiated in response to the Covid-19 pandemic, as announced by the Department of Justice. Nishant Patel, aged 41, and Harjeet Singh, aged 49, both residents of Houston, along with three others, were implicated in the fraudulent acquisition and laundering of substantial sums of money in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the CARES Act.
Their acknowledgment includes the submission of deceptive PPP loan applications to both SBA and specific SBA-approved PPP lenders. Moreover, all five defendants played a role in laundering the fraudulently obtained PPP loan funds by providing blank, endorsed checks to co-conspirators. These checks were written in the names of individuals masquerading as employees of the companies that purportedly received the PPP loans, despite having no actual employment ties. Subsequently, these fabricated paychecks were cashed at check-cashing establishments controlled by other members of the conspiracy.
As part of this elaborate scheme, Patel secured a fraudulent PPP loan amounting to approximately $474,993, while Singh acquired two false PPP loans totaling $937,379. The involvement of the other three individuals in the fraud resulted in a cumulative sum of over $1.4 million obtained through deceptive means. All of these individuals are slated to be sentenced on January 4, 2024, and they each face a maximum penalty of five years in prison.
Furthermore, apart from these five defendants, another individual was found guilty at trial for their involvement in the scheme, and an additional 15 individuals have pleaded guilty to their participation in the loan fraud endeavor.
It is crucial to note that the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 played a pivotal role in swiftly providing direct economic assistance to American workers, families, small businesses, and industries grappling with the repercussions of the Covid-19 pandemic.
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