Two men pleaded guilty recently to federal charges for a scheme to launder millions of dollars in federal forgivable loans under a COVID-19 relief program for small businesses.
Siddiq Azeemuddin, 42, of Naperville, Illinois and Raheel Malik, 41, of Sugar Land, Texas laundered more than $3 million in Paycheck Protection Program loan funds through Azeemuddin’s business, Fascare International Inc., a press release from the U.S. Department of Justice said.
“As part of the scheme, Azeemuddin instructed Malik to fill out blank checks from companies that received PPP loans by putting the names of fake employees in the payee line," the release said. "At Azeemuddin’s direction, Malik then cashed the checks at a financial institution and then transported the cash to other members of the conspiracy. In exchange for laundering the funds, Azeemuddin received 1% to 2% of each check cashed.”
Azeemuddin pleaded guilty to one count of conspiracy to commit wire fraud and one count of money laundering. His sentencing is scheduled for March 7. He faces a maximum sentence of 40 years in prison, the Department of Justice said.
Malik pleaded guilty to similar charges and faces a maximum sentence of five years in prison. His sentencing is also March 7, the Department of Justice said.
In May, the Justice Department established the COVID-19 Fraud Enforcement Task Force to combat pandemic-related fraud and prosecute domestic and international actors. The task force also helps agencies provide relief programs by “augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts," the press release said.
