A California resident, Nipun Desai, has been sentenced to 12 months and one day for making false statements related to the CARES Act. Acting U.S. Attorney Michael M. Simpson announced the sentencing by U.S. District Judge Wendy B. Vitter. Desai, formerly of Hammond, Louisiana, is 56 years old.
The CARES Act was signed into law on March 27, 2020, providing emergency assistance through the United States Small Business Administration (SBA) to small business owners affected by the COVID-19 pandemic. The primary funding sources were the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).
Court records reveal that on January 25, 2021, Desai made false statements to obtain a PPP loan of $146,947.50 for a hotel in Metairie, Louisiana. At that time, the hotel was permanently closed with no employees or payroll.
Desai's sentence includes time in both the Bureau of Prisons and home incarceration followed by two years of supervised release. He must repay approximately $234,000 to the SBA and $26,000 to the Louisiana Workforce Commission and has paid a mandatory special assessment fee of $100 along with a fine of $25,000.
The Department of Justice encourages reporting any attempted fraud involving COVID-19 through their National Center for Disaster Fraud Hotline or online complaint form.
This investigation was part of efforts by the Pandemic Response Accountability Committee (PRAC) Task Force conducted by U.S. Department of Veterans Affairs - Office of Inspector General among others. The PRAC promotes transparency and oversight over federal COVID-19 spending which exceeds $5 trillion.
Acting U.S. Attorney Simpson commended several agencies involved in this case including Assistant U.S. Attorney Edward J. Rivera who led the prosecution from the Financial Crimes Unit.
For more information on pandemic-related fraud investigations visit justice.gov/coronavirus.
