A North Texas man has been sentenced to federal prison for scheming to fraudulently obtain more than $3.3 million in Paycheck Protection Program (PPP) loans. The program is guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Fahad Shah sought the funds through a false claim of his family’s business, WBD Weddings by Farah Inc. Shah falsely claimed that the business employed more than a hundred people and paid millions of dollars in compensation to those employees. In actuality, WBF had no employees and was being operated solely by his wife.
Shah’s false claims and forged documents got him over $1.5 million in PPP loan funds. Court records show that he used the funds for personal gain, such as paying a home mortgage, thus violating the program’s terms.
On May 19, Fahad Shah pleaded guilty to wire fraud. Thursday, Sept.16, saw him get sentenced to thirty-one months in federal prison by U.S. District Judge Amos L. Mazzant, III.
“Stealing limited COVID relief funds is the very definition of stealing from the less fortunate. Every dollar that was stolen and extravagantly spent in this case was one less dollar that went to a struggling business scrambling to meet its payroll obligations to employees,” said Acting U.S. Attorney Nicholas J. Ganjei. “The Department of Justice and its partners will do everything in their power to investigate and prosecute those that would deign to steal these limited funds and stall national recovery efforts,” he continued.
