Six Texas men have received sentences for orchestrated fraud in a significant court decision. They focused on the Paycheck Protection Program (PPP), a loan program backed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The fraud conspiracy led to over $20 million in losses.
Details of Sentences Received
Sentences were handed down today to several defendants. They differed in length and severity. Hamza Abbas, 31, will serve three years and eight months. Ammar Uddin, 31, will serve one year and six months. Another Richmond local, Arham Uddin, 27, received a one-year and six-month sentence.
Syed Ali, 55, from Sugar Land, faces two years in prison. Muhammad Anis, 55, a resident of Houston, is sentenced to one year and nine months. Another Houston resident, Jesus Acosta Perez, 33, is meanwhile sentenced to one year and one day. Each of these men pleaded guilty before sentencing.
What Techniques Did the Fraudsters Use?
Court documents reveal a trail of deceit. The defendants conspired together and with others. They aimed to obtain PPP loans fraudulently. The loans required truthful reporting on the number of employees and monthly payroll expenses. In their applications, they lied about both. They included fake bank records and counterfeit federal tax forms. Abbas was central to recruiting conspirators and creating these fake records for kickbacks.
The laundering of the fraudulent proceeds involved a fake paycheck scheme. They wrote checks from companies with PPP loans to nonexistent employees. Then, they cashed these checks at certain businesses. Notably, one business belonged to another co-conspirator.
Were There Others Involved in This Fraud?
In January, the court sentenced three other conspirators. Raheel Malik, 43, from Sugar Land, was sentenced to one year and six months. Nishant Patel, 41, of Houston, was sentenced to two years in prison. Harjeet Singh, 50, of Katy, received five years of probation.
Furthermore, in October 2023, seven other individuals faced the court. Among them was the ringleader, Amir Aqeel, 55, of Houston. Aqeel received a harsh sentence of 15 years.
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Who Is Behind the Investigation?
The announcement of these sentences came from a collaboration of national agencies and legal divisions. Nicole M. Argentieri, U.S. Attorney Alamdar S. Hamdani, and diverse special agents were involved. Authorities from the SBA-OIG, FHFA-OIG, HSI, FDIC-OIG, and TIGTA are investigating this case. The team also includes committed trial attorneys and assistant U.S. attorneys.
What Can the Public Do About Such Fraud?
The public plays a role in combating this fraud. The Justice Department asks individuals to report COVID-19 fraud allegations. They should call the Justice Department's National Center for Disaster Fraud Hotline or use the Web Complaint Form.
The Leadership Against PPP Fraud
The Criminal Division's Fraud Section leads the charge against PPP fraud. This unit has prosecuted over 200 defendants. It involves more than 130 criminal cases related to the CARES Act. They have seized money, properties, and luxury items. These items were bought with fraudulently obtained PPP funds.
Continued Vigilance in Safeguarding Relief Programs
These sentences underscore the government's stance on fraud in the PPP and the COVID-19 relief scheme. Law enforcement is committed to upholding the integrity of these programs. The punishment of these six men sends this precise message. The U.S. Justice Department stands firm in its resolve to identify, prosecute, and sentence those who misuse government aid programs. It aims to maintain the utmost trust and appropriate disbursement of funds designed to aid those in genuine need during trying times.
The government continues to reinforce the protection around its COVID-19 relief efforts. This ensures that fraudulent schemes do not plunder the public funds allocated for pandemic relief. The commitment to accountability is unwavering as the legal proceedings against such fraud continue nationwide.
