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Member of $3M COVID-19 Loan Fraud Conspiracy Sentenced | USAO-EDVA

ALEXANDRIA, Va. – A McLean guy was sentenced nowadays to 33 months in prison for his function in a conspiracy that included the submission of at least 63 fraudulent loan apps to obtain COVID-19 pandemic reduction funds to which he and his co-defendants had been not entitled.

In accordance to courtroom documents, between April and December of 2020, Foad “David” Darakhshan, 47, conspired with his girlfriend, Haleh Farshi, 44, of Ashburn, and his brothers and their close friends to post falsified bank loan programs in order to receive Paycheck Defense Method (PPP) loans via financial institutions and Financial Injury Disaster Financial loans (EIDL) via the Compact Organization Administration. The defendants employed multiple shell entities they managed to use for PPPs and EIDLs and falsified IRS tax varieties submitted to creditors. They engaged in a team WhatsApp chat devoted to executing the fraud plan, overtly discussing falsifying documents and inflating the numbers of staff members, company revenues, and payroll figures in get to induce loan companies to make the financial loans.

Completely, the defendants wrongfully attained around $3 million in financial loan proceeds. They submitted at the very least 63 personal loan purposes, of which 17 were being permitted, the remainder currently being denied. Foad Darakhshan gained around $1.5 million of the all round proceeds of the scheme. The team employed the proceeds to make investments in the stock market, fund a household design job, travel to Cancun, purchase a motor vehicle, and pay out for other individual charges.

The U.S. govt recovered around $1 million of the overall scheme proceeds by seizure warrants, and Foad Darakhshan is ordered to shell out whole restitution.

Haleh Farshi Farough Darakhshan, 39, of Terrific Falls Fouzi Darakhshan, 36, of Falls Church Shoughi Darakhshan, 30, of McLean and Marcus Gharib, 29, of Tysons, all beforehand pleaded guilty to their roles in the conspiracy. They are scheduled to be sentenced involving July and September.

Jessica D. Aber, U.S. Lawyer for the Jap District of Virginia Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Discipline Place of work Prison Division and Amaleka McCall-Brathwaite, Eastern Location Particular Agent in Charge for the Modest Business enterprise Administration, Office environment of Inspector Normal (SBA-OIG), created the announcement following sentencing by U.S. District Judge Liam O’Grady.

Assistant U.S. Legal professional Russell L. Carlberg prosecuted the scenario with support from the Asset Restoration Unit.

A duplicate of this press launch is situated on the web site of the U.S. Attorney’s Office for the Eastern District of Virginia. Relevant courtroom files and details are positioned on the site of the District Court for the Jap District of Virginia or on PACER by exploring for Scenario No. 1:21-cr-267.