Five men from Texas have pleaded guilty in a scheme to fraudulently obtain and launder millions of dollars in forgivable Paycheck Protection Program (PPP) loans. The PPP loans were intended to assist small businesses during the COVID-19 pandemic by covering payroll costs and other essential expenses.
Muhammad Anis, Nishant Patel, Harjeet Singh, Arham Uddin, and Ammas Uddin were involved in a conspiracy to defraud the Small Business Administration (SBA) and SBA-approved PPP lenders by submitting false and fraudulent loan applications. Anis obtained a fraudulent PPP loan of approximately $483,333, Patel received around $474,993, Singh acquired two false loans totaling roughly $937,379, Arham Uddin secured approximately $491,664, and Ammas Uddin received nearly $498,415.
In addition to obtaining these fraudulent loans, the defendants assisted in laundering the funds by providing co-conspirators with blank, endorsed checks made payable to individuals posing as employees. These checks were meant to make the loans potentially forgivable at a later date but were cashed at check-cashing stores controlled by other members of the conspiracy.
All five defendants pleaded guilty to one count of conspiracy to commit wire fraud and are scheduled to be sentenced on January 4, 2024. Each faces a maximum penalty of five years in prison.
Earlier in the year, Abdul Fatani was convicted for his involvement in the same scheme, which sought over $35 million through more than 80 fraudulent PPP loans. Fatani was convicted of conspiracy to commit wire fraud, wire fraud, and money laundering. He faces a maximum penalty of 20 years in prison for conspiracy and wire fraud and ten years for money laundering.
This case is part of a broader effort by the Department of Justice’s Fraud Section to combat fraud related to COVID-19 relief programs. Over 200 defendants have been prosecuted in more than 130 criminal cases, with over $78 million in cash proceeds seized, along with real estate properties and luxury items purchased with fraudulently obtained PPP funds.
The government encourages individuals with information about COVID-19 fraud to report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or through the NCDF Web Complaint Form.
By FCCT Editorial Team
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