A businessman from suburban Chicago has been indicted on federal charges for allegedly collaborating with a California man to fraudulently obtain over $6.3 million in loans and grants meant for small businesses under the CARES Act.

Francesco Distefano, 28, of Addison, Illinois, and Sargis Urumieh, 57, of Glendale, California, are accused of engaging in fraud related to the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL), both relief sources under the CARES Act. The PPP loan allowed forgiveness if used on essential expenses like payroll and rent. The EIDL Program offered loan assistance or grants for working capital and operating expenses.

According to an indictment returned in the Northern District of Illinois, Distefano and Urumieh applied for loans and grants for West Coast POS Inc. and National POS Inc., where Urumieh was a corporate officer. Distefano also sought loans for Distefano Enterprises LLC, which he owned. The applications reportedly included false statements about operations such as employee numbers, gross revenues, and payroll expenses.

The indictment alleges that Distefano used proceeds from the fraud to purchase luxury cars including a Lamborghini Huracan, Maserati Ghibli, and Porsche 911. It further accuses both men of using fraudulent means to buy a residential property in Glendale.

Distefano faces eleven counts of wire fraud, five counts of money laundering, and one count of making a false statement to a bank. Urumieh is charged with eight counts of wire fraud. Arraignments have not yet been scheduled in federal court in Chicago.

The charges were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Douglas S. DePodesta from the FBI's Chicago Field Office; Ramsey E. Covington from IRS Criminal Investigation Chicago Field Office; and Hannibal “Mike” Ware from the U.S. Small Business Administration's Inspector General office. Assistant U.S. Attorney Jeffrey S. Snell represents the government.

"The public is reminded that an indictment contains only charges and is not evidence of guilt," officials stated. "The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt."

Each count carries severe penalties: up to 20 years per count for wire fraud or money laundering convictions while making a false statement can result in up to 30 years imprisonment.

Anyone with information about attempted Covid-19-related fraud is urged to report it via phone at (866) 720-5721 or online through https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.