The DOJ charged a Washington tech executive with Paycheck Protection Program ("PPP") fraud and money laundering.
In a Complaint filed in the U.S. District Court for the Western District of Washington, the DOJ alleged that the tech executive submitted PPP loan applications to five financial institutions. According to the Complaint, the applications contained false or misleading statements concerning the company's (i) operations and number of employees and (ii) payroll expenses. The DOJ further alleged that the tech executive falsely claimed to not own or manage any other businesses.
In addition, the DOJ alleged that the loan applications were accompanied by tax filings that had never been filed with the IRS. The DOJ alleged that the tech executive transferred $231,471 of the illegally obtained loan proceeds to a personal brokerage account.
Commentary
Notable in this criminal complaint are the FBI's descriptions of information it obtained from numerous financial institutions as part of its investigation. As law enforcement and oversight bodies continue to review PPP loans, lenders can expect inquiries about the documents borrowers submitted, the borrowers' communications with the lenders, and borrowers' use of PPP proceeds following loan disbursement
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Primary Sources
- DOJ Press Release: Washington Tech Executive Charged with COVID-Relief Fraud and Money Laundering
- USA v. Mukund Mohan: Complaint
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