Alexander Barabash, Wire Fraud, Maryland 2023
Baltimore Man Sentenced to 14 Months in Federal Prison for COVID-19 CARES Act Loan Scam
A 52-year-old Baltimore man, Alexander Barabash, has been sentenced to 14 months in federal prison for wire fraud related to the submission of fraudulent Coronavirus Aid, Relief, and Economic Security (CARES) Act loan applications.
According to court documents, between April 2020 and January 2021, Barabash submitted three fraudulent Paycheck Protection Program (PPP) loan applications on behalf of his construction company, iDesignBuild LLC. The applications falsely stated that the company had employees and an average monthly payroll, when in fact, it did not have any employees, but engaged independent contractors.
On April 9, 2020, Barabash submitted a PPP loan application falsely stating that the company had four employees and an average monthly payroll of $18,750. He received $46,800 in PPP loan proceeds in the iDesignBuild bank account. On April 25, 2020, he submitted a second fraudulent PPP loan application on behalf of iDesignBuild, stating that the company had seven employees and an average monthly payroll of $38,777.60.
Barabash admitted that on January 20, 2021, he submitted a third fraudulent loan application on behalf of iDesignBuild, representing that the company had 37 employees and an average monthly payroll of $525,227. He used the fraudulently obtained loans to facilitate the purchase of two properties in Sparks Glencoe, Maryland, and to purchase a 2016 Chevrolet Corvette.
Barabash was sentenced to 14 months in federal prison, followed by six months of home detention as part of three years of supervised release. He was also ordered to pay a fine of $400,000, a money judgment in the amount of $1,295,000, and restitution of $1,317,352.05. He must forfeit $504,869.54 in funds seized from the iDesignBuild business bank account and his interest in a property in Sparks Glencoe, Maryland.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Ross Luciano of the United States Secret Service - Baltimore Field Office.
Key Facts
- State: Maryland
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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