Chicago Businessman Sentenced for Role in Bank Fraud and Pandemic-Relief Fraud Schemes
An Illinois businessman was sentenced yesterday to six years in prison and two years of supervised release for his role in schemes to fraudulently obtain over $55 million in commercial loans and lines of credit, as well as for submitting fraudulent applications to obtain COVID-19 relief money guaranteed by the U.S. Small Business Administration (SBA) through the Paycheck Protection Program (PPP). He was also ordered to pay $ 23,226,005 in restitution.
“The defendant orchestrated a massive scheme to fraudulently obtain over $55 million in commercial loans and lines of credit from federally insured financial institutions and exploit the Paycheck Protection Program,” said Assistant Attorney General A. Tysen Duva of the Criminal Division. “The defendant’s lies and deceit put our financial system at risk and wasted limited resources. The Criminal Division remains dedicated to prosecuting fraudsters who steal from our important institutions and taxpayer-assistance programs.”
“The duration, brazenness, and magnitude of this fraud scheme speaks to the defendant’s determination and greed,” said U.S. Attorney Andrew S. Boutros for the Northern District of Illinois. “The fact that such a sophisticated scheme was uncovered and successfully prosecuted is a testament to the diligent work of our prosecutors and federal law enforcement agents. Our Office was proud to partner with the Department of Justice Fraud Section on this case and many others that hold defendants accountable and provide justice for defrauded victims.”
According to court documents and evidence presented at trial, Rahul Shah, 56, of Evanston, the owner and operator of several information-technology companies in the Chicago area, fraudulently obtained funds from loans and lines of credit for which he was not eligible from federally insured financial institutions and later defaulted on at least one such line of credit and one such loan. Shah submitted to federally insured financial institutions falsified bank statements that fraudulently inflated deposits, falsified balance sheets that overstated revenues, and fabricated audited financial statements with forged signatures. Shah also engaged in monetary transactions with proceeds from the bank fraud.
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