HOUSTON – A Houston man who was the head of a multimillion-dollar COVID-19 relief fraud ring and six of his co-conspirators were sentenced for fraudulently obtaining more than $20 million in forgivable Paycheck Protection Program loans that the Small Business Administration guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the United States Department of Justice announced Tuesday.
According to court documents, Amir Aqeel, 54, was sentenced to 15 years in prison and ordered to forfeit $5,583,111.48 for leading the conspiracy, and for conspiring with at least 14 others to submit 75 fraudulent PPP loan applications in 2020.
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Investigators said in the applications, the group falsified the number of employees and the average monthly payroll expenses of the businesses. They also submitted fraudulent bank records and fake federal tax forms in support of the PPP loan applications. Aqeel paid some of them large kickbacks in exchange for their assistance with the fraudulent PPP loan applications, authorities said.
“During a time of unprecedented national peril, these defendants took advantage of a pandemic and stole millions of dollars in federal funds intended to help businesses keep their employees paid and their doors open,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The sentences demonstrate that the Department and law enforcement have and will continue to hold individuals accountable for committing fraud on the government.”
Investigators said the group also laundered a portion of the proceeds by writing checks from companies that received PPP loans to fake employees. The group cashed these fake paychecks at Fascare International Inc., dba Almeda Discount Store (Almeda), a company that Siddiq Azeemuddin owned. In total, authorities said they cashed more than 1,100 fake paychecks for more than $3 million in fraudulent PPP loan proceeds at Almeda.
“Amir Aqeel engaged in one of the largest PPP conspiracies in the country,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “He and his cohorts stole millions from the public fund, using that money to buy houses, a Porsche, even a Lamborghini, all while taking advantage of programs intended to help those struggling during the pandemic. These sentences send a strong message to scammers looking for a quick and easy buck in the Southern District of Texas; you need to look elsewhere.”
Federal agents also executed 45 seizure warrants in conjunction with the case and have reportedly seized, among other items, a residence, a Porsche, and a Lamborghini purchased with illegally obtained funds.
Five others had previously pleaded guilty and were sentenced Tuesday for their alleged roles in the loan fraud scheme. Khalid Abbas, 57, and Rifat Bajwa, 54, both of Richmond, Texas, were sentenced to two and a half years and three years in prison, respectively. Azeemuddin, 44, of Naperville, Illinois, was sentenced to two years in prison. Pardeep Basra, 54, of Houston, was sentenced to three years and five months in prison. Richard Reuth, 60, of Spring, Texas, was sentenced to two and a half years in prison.
“Today, Aqeel and six of his co-conspirators in this case were brought to justice for their roles in a fraudulent scheme that swindled millions of dollars from the Paycheck Protection Program, which was created to assist struggling businesses during the COVID-19 pandemic,” said Special Agent in Charge Anand Ramlall of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Dallas Region. “The FDIC-OIG, working with our law enforcement partners, will continue to pursue and hold accountable those who took advantage of these programs and threatened to undermine the integrity of our nation’s banking system.”
In February, a federal jury convicted Abdul Fatani, 57, of Richmond, Texas, of one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of money laundering. He was sentenced today to three years in prison.
The SBA-OIG, FHFA-OIG, HSI, FDIC-OIG, and TIGTA are investigating the cases.