Collin County Wedding Planner Sentenced to Jail for Abuse of PPP Loans
A northern Texas marriage ceremony planner was sentenced to federal jail after utilizing COVID-19 instruments to repay his dwelling mortgage and purchase two Teslas and a Mercedes.
Fahad Shah, 45, was sentenced to 31 months in federal jail Thursday after pleading responsible to wire fraud, based on a press launch from the US Legal professional’s Workplace within the japanese borough of Texas. Legislation enforcement officers say the Murphy man ran a plan beneath the Coronavirus Assist, Aid and Financial Safety Act to gather greater than $ 3.3 million in Paycheck Safety Program (PPP) loans.
The Division of Justice and its companions will proceed to research and prosecute those that commit related frauds, performing US Legal professional Nicholas J. Ganjei stated within the press launch.
“Stealing restricted COVID aids is the very definition of stealing from the much less lucky,” Ganjei stated. “Each greenback stolen and extravagantly spent on this case was one much less greenback that went to a struggling firm struggling to satisfy its payroll obligations to workers.”
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Shah known as for greater than $ 3 million in PPP funding when he claimed the family-run enterprise Weddings by Farah Inc. (WBF) had paid tens of millions in compensation to its workers, the assertion stated. He additionally falsely claimed that WBF employed greater than 100 folks when in actuality Shah and his spouse had been the one two staff.
However primarily based on these lies and cast paperwork, a lender gave Shah greater than $ 1.5 million in PPP loans. Shah then used that cash to repay the remainder of his mortgage and purchase three automobiles, amongst different issues.
Weddings by Farah has annual gross sales of $ 42,000, based on industrial information and analytics firm Dun & Bradstreet Corp. A Fb web page for Weddings by Farah claims its “mission is to exceed our clients’ expectations by innovation, creativity and professionalism”.
Shah just isn’t the primary to get in bother due to his coronavirus device abuse.
Officers introduced on Wednesday that an Atlanta actuality TV star had been convicted of federal fees of fraudulently buying a PPP mortgage and “operating a Ponzi program from his tow enterprise” on FOX 5.
In November, the 60-year-old Michigan pizzeria proprietor pleaded responsible to financial institution fraud after admitting “at the very least 9 bogus PPP mortgage purposes,” FOX 59 reported.