Tech executive accused of COVID-19 commercial loan fraud and money laundering

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An Eastside tech executive was arrested for allegedly seeking more than $ 5.5 million in Paycheck Protection Program (PPP) loans and laundering the proceeds.

According to a statement from the United States Department of Justice’s Attorney General’s Office for the Western District of Washington, Mukund Mohan, a 48-year-old man from Clyde Hill, has been charged with a criminal complaint over one count of money laundering. money and one count of electronic fraud.

The criminal complaint alleges that Mohan fraudulently applied for these coronavirus business relief loans for six different companies, providing amended documents and tax findings and making various misleading statements about the personnel and property of the companies. From April to June, Mohan submitted eight loan applications to five different financial institutions.

Four of these companies were not registered with the Ministry of Revenue and did not have a business license. One company, Zuput, was registered for a business license around the same time Mohan used it to apply for a PPP loan. There is no record of these companies paying salaries to their employees. The sixth company, Mahenjo, was bought by Mohan recently and had not been in business or had no employees from December 2018 to May 2020, although Mohan’s request indicated that it had paid 2,376,500. $ to employees in 2019.

The complaint further alleges that Mohan transferred at least $ 231,000 in fraudulently obtained loan proceeds to his personal brokerage account for his personal benefit.

The CARES Act is a federal law enacted on March 29, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $ 349 billion in forgivable loans to small businesses for job maintenance and certain other expenses, through the PPP. In April 2020, Congress authorized more than $ 300 billion in additional P3 funding.

The PPP allows small businesses and other eligible organizations to receive loans with a two-year term and an interest rate of 1%.

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