North Carolina restaurant proprietor son accused of fraudulent $ 1.7 million in PPP loans
WAXHAW, NC (FOX 46 CHARLOTTE) – A North Carolina man and his son have been charged with fraud after the US Division of Justice stated it secured greater than $ 1.7 million in PPP loans via a number of fraudulent requests.
DOJ officers say Izzat Freitekh, 55, and his son Tarik Freitekh, often known as Tareq, 33, have every been charged with one depend of conspiracy to commit wire fraud and ‘one depend of financial institution fraud. Elder Freitekh was additionally charged with one depend of misrepresenting.
The indictment alleges that the PPP loans granted via the Small Enterprise Affiliation included false and fraudulent IRS tax paperwork submitted on behalf of La Shish Kabob restaurant in Charlotte and, individually, La Shish Catering.
The Paycheque Safety Program (PPP) launched below the COVID-19 CARES Act permits small companies and different eligible organizations to obtain two-year loans at an rate of interest of 1%.
There was additionally an utility that included fraudulent IRS tax paperwork submitted on behalf of Inexperienced Apple Catering LLC (Inexperienced Apple), indicating that the restaurant paid staff $ 4.8 million in 2019, regardless of proof that the corporate didn’t exist earlier than March 2020.
A declare that included false firm payroll info and fraudulent IRS tax paperwork was additionally submitted on behalf of Aroma Packaging Methods.
The indictment additionally alleges that Izzat Freitekh made false statements to legislation enforcement officers, claiming that an organization known as “Kyber Capital” was chargeable for submitting the PPP mortgage functions in query.
The DOJ claims to have recovered roughly $ 1.3 million from the PPP funds disbursed on this case.
Anybody with details about alleged tried fraud involving COVID-19 can report it by calling 866-720-5721.