An engineer in Texas who allegedly sought more than $10 million in loans from the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act has been charged with bank fraud.
According to the Department of Justice, Shashank Rai claimed to have 250 employees for his company, when he had no employees working for his business.
This action is the latest in the DOJ’s pursuit of those taking advantage of the fallout from the coronavirus pandemic.
In late March, the DOJ set up a nation-wide program and reporting process for coronavirus-related frauds. Shortly after setting up the program, the department announced its first enforcement action against a COVID-19 fraudster.
“As alleged, Rai fraudulently pursued millions of dollars in loans intended for legitimate small businesses suffering the economic hardships o the COVID-19 pandemic,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The department and our law enforcement partners will remain vigilant in our efforts to protect critical CARES Act relief programs from fraud and abuse.”
If you have information about COVID-19 frauds, it is best practice to contact an experienced whistleblower attorney to assist you.
Read the Department of Justice press release: Engineer Charged in Texas with COVID-Relief Fraud.