A Southern California resident charged with fraud involving $1.7 million in COVID-19 relief funds passed out in court when he and his father were found guilty by a jury. Tarik Freitekh, 33, was confronted with banking and banking fraud.
Man faints after being found guilty of PPP loan fraud
According to evidence presented during a six-day trial, Tarik and his father Izzat Freitekh, 55, obtained $1.7 million in fraudulent proceeds by filing multiple fraudulent PPP loan applications for four companies owned by Izzat Freitekh.
The loan applications misrepresented the number of employees and labor costs. After obtaining the fraudulent proceeds of the loan, the defendants were charged with engaging in illegal money transactions with the proceeds of the plan, including making $30,000 payments to family members.
Izzat Freitekh was convicted of one count of conspiracy to commit money laundering, three counts of money laundering, and one count of making false statements. He faces up to 10 years in prison for conspiracy to commit money laundering, 10 years in prison for each of the money laundering charges and five years in prison for counting false statements.
While his father Tarik Freitekh was convicted of one count of conspiracy to commit fraud, one count of bank fraud, one count of conspiracy to commit money laundering, one count of money laundering and one count of counterfeiting and concealing material facts. He faces up to 30 years in prison for the count of bank fraud, 20 years in prison for the wire transfer fraud and conspiracy charges for money laundering, 10 years in prison for the count of money laundering and five years in prison for the count of falsifying material facts .
Izzat can stay out of prison until sentencing in six months. While his father Tarik Freitekh was detained.
Feds clinging to pandemic-related fraud
In May last year, the US Attorney General established the COVID-19 Fraud Enforcement Task Force to combat and prevent pandemic fraud. This is after rampant fraud was observed with COVID-related aid. Late last year, the Secret Service investigation into unemployment insurance fraud and Paycheck Protection Program (PPP) loans resulted in the seizure of more than $1.2 billion in assets, while more than $2.3 billion in fraudulently acquired funds was seized. recovered.
Image: DepositphotosMore in: PPP Loans
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