Leah B. Foley United States Attorney for the District of Massachusetts | Department of Justice
A New York City real estate developer, David Ebrahimzadeh, has been indicted on multiple federal charges for allegedly defrauding pandemic relief loan programs of more than $8 million. The indictment was announced by United States Attorney Leah B. Foley and several federal law enforcement officials in Boston.
Ebrahimzadeh, 45, is accused of operating Corniche Capital, LLC as a holding company for various limited liability companies engaged in commercial real estate transactions. According to prosecutors, these businesses were not eligible under Small Business Administration rules for Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans. They were also allegedly ineligible for loans from the Federal Reserve Bank of Boston’s Main Street Lending Program.
Authorities allege that after the COVID-19 pandemic began, Ebrahimzadeh applied for and received loans from each of these programs using false information. Charging documents state that he submitted fraudulent revenue and payroll figures and misrepresented his debts and liabilities to lenders. He is also accused of seeking relief loans for companies that had already been dissolved before the pandemic.
Prosecutors claim Ebrahimzadeh used the funds obtained through these alleged schemes to purchase luxury items, pay off personal and business debt, and buy a personal home on Long Island. It is further alleged that he and a family member secured another pandemic relief loan to purchase a second home on Long Island.
In 2021, Ebrahimzadeh allegedly sought forgiveness for one PPP loan by falsely claiming he had paid employees in 2020. As part of this alleged fraud, authorities say he filed tax returns with false expense deductions in 2019 and reported about $600,000 in wage expenses in 2020.
The total amount Ebrahimzadeh is alleged to have obtained through these fraudulent activities is approximately $8.5 million.
He faces one count of bank fraud, two counts of wire fraud affecting a financial institution, one count of wire fraud, and two counts of procuring a false tax return. The most serious charges carry potential penalties of up to 30 years in prison and fines up to $1 million or twice the gross gain or loss involved.
United States Attorney Leah B. Foley stated: "United States Attorney Leah B. Foley; Brian Tucker, Special Agent in Charge, Board of Governors of the Federal Reserve System, Office of Inspector General, Eastern Region; Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation Boston Division; and Thomas Demeo, Special Agent in Charge of Internal Revenue Service’s Criminal Investigations in Boston made the announcement today."
Assistant U.S. Attorneys Kriss Basil and Elianna Nuzum are prosecuting the case with assistance from the Special Inspector General for Pandemic Recovery.
Authorities emphasized that all details provided are allegations at this stage: "The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law."
