COVID-19 Pandemic Loan Scheme Unravels: Pennsylvania Man Pleads Guilty
A Pennsylvania man has pleaded guilty to a scheme that defrauded the government out of COVID-19 pandemic loan money. Alhaji Kundu Aly, 35, of Chester, Pennsylvania, was convicted of one count of wire fraud in federal court in Cedar Rapids, Iowa, on June 14, 2024.
Aly admitted to organizing a scheme to recruit and assist individuals in the Northern District of Iowa and elsewhere to apply for Paycheck Protection Program (PPP) loans for which they did not qualify. In exchange for a fee, Aly and his accomplices submitted false, fraudulent, and fictitious documents and statements to lending institutions in support of the PPP loans.
After the PPP applicants received the fraudulent loans, Aly and his accomplices demanded a portion of the money, and in some cases, Aly traveled to demand payment in person. Aly admitted to being responsible for no less than $250,000 in losses based on at least 21 fraudulent PPP loans.
The scheme, which took place between 2020 and 2021, was uncovered by the Attorney General’s COVID-19 Fraud Enforcement Task Force. The task force was established on May 17, 2021, to combat and prevent pandemic-related fraud. Aly remains free on bond pending sentencing.
The case is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Small Business Administration, Office of Inspector General, and the Federal Bureau of Investigation. Aly faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
Citizens with information about allegations of attempted fraud involving COVID-19 can report it by calling the National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For more information on the government’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Key Facts
- State: Iowa
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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