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An organization of about 14 people, plus several business owners and workers of Indian descent, has been charged with a large fraud scheme involving a COVID-19 pandemic relief program in the U. S. state of Texas. U. S.
The case, so far the largest investigated through the Pandemic Response Accountability Committee’s (PRAC) anti-fraud task force, led to the arrests of the defendants in Texas, California and Oklahoma.
The defendant allegedly defrauded the Paycheck Protection Program (RAP), a monetary program that brought the COVID-19 pandemic, as well as various monetary institutions, in more than $53 million in credit products.
U. S. Attorney for the Northern District of Texas Leigha Simonton underscored the seriousness of the charges, saying, “Defrauding the government is an affront to American taxpayers. Defrauding the government is a pandemic, at a time when millions of contract workers on payroll and rent – it rubs salt in a wound. “
“These defendants allegedly conspired to borrow tens of millions of dollars from the paycheck hedging program, a budget that may have helped eligible businesses pay their expenses and keep their workers afloat. “
The 14 face 16 counts, in addition to conspiracy to engage in bank fraud, bank fraud, cord fraud, misrepresentation and conspiracy to engage in money laundering.
The defendants allegedly submitted fraudulent PPP loan applications, inflating payroll prices by manipulating bank statements and tax forms.
They also created a fake paper trail of salary expenses by funneling the loan budget through bank accounts.
The defendants include Mihir Patel, Sunshine Recycling’s lead CFO, as well as homeowners and company workers, as well as Mammoth Group, R. A. Industries, LK Industries, West Texas Scrap, Gulf Coast Scrap, 4G Metals, West Texas Equipment, NTC Industries. , Sunshine Recycling, Level Eight, Elephant Recycling, Nanosoft Technologies and others.
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The PPP, established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, was intended to provide monetary assistance to Americans and businesses affected by the pandemic. It has provided forgivable loans to small businesses to cover payroll and secure business expenses. The program ended in May 2021.
If convicted, defendants can face severe penalties, totaling up to 30 years in federal crimes on charges of conspiracy to commit bank fraud, bank fraud and aiding and abetting, bank fraud and misrepresentation before the Federal Deposit Insurance Commission (FDIC). . In addition, they can only face up to 20 years for wire fraud and 10 years for conspiracy to engage in money laundering.