Matthew M. Graves U.S. Attorney | U.S. Attorney for the District of Columbia
Patrick Strauss, the owner of Powergrid Real Estate LLC in Washington D.C., has been sentenced to 48 months of probation for his involvement in a conspiracy to defraud the Paycheck Protection Program (PPP). The sentence includes six months of home confinement followed by intermittent incarceration on weekends. Strauss has also been ordered to pay $304,900 in restitution and an $8,784 fine.
The sentencing was announced by U.S. Attorney Edward R. Martin Jr., along with FBI Special Agent Sean Ryan, D.C. Inspector General Daniel Lucas, and IRS-CI Executive Special Agent Kareem A. Carter. Strauss had pleaded guilty to conspiracy to commit bank fraud on September 12, 2024.
According to court documents, Strauss was approached in 2020 with an offer to file a PPP loan application despite knowing that Powergrid did not qualify due to having no employees or payroll. A co-conspirator helped prepare the fraudulent application claiming the company had 16 employees and an average monthly payroll of over $132,000.
In July 2020, Strauss submitted the falsified application to Capital Bank, which then transferred $304,900 into Powergrid's account. In July 2021, further false tax returns were prepared by a co-conspirator and submitted by Strauss for loan forgiveness.
The CARES Act authorized PPP loans as financial relief during the COVID-19 pandemic for small businesses facing economic challenges. The loans were meant for payroll costs and other specific expenses with potential forgiveness if used appropriately.
The case was investigated by the U.S. Attorney’s Office for the District of Columbia alongside the FBI’s Washington Field Office and IRS-CI Washington D.C. Field Office. Assistant U.S. Attorney John Crabb Jr. prosecuted the matter.
Individuals with information regarding COVID-19-related fraud can contact the Department of Justice's National Center for Disaster Fraud Hotline at 866-720-5721 or use their online complaint form.
