Ashburn Con Man Steals $851K in COVID-Relief Funds

⏱ 2 min read

Ashburn con artist Ravindar Reddy Palla, 59, swiped $851,900 from COVID-19 relief programs, using the cash to trade securities in his own name.

According to court documents, Palla’s scheme involved IT Objects, LLC, which he controlled despite listing his wife as the nominal owner. He lied to the Small Business Administration to qualify for a government contract, then bilked the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program out of $351,900 and $499,900, respectively.

Palla transferred the lion’s share of the funds into his personal brokerage account, using them to trade securities. He later submitted fake loan forgiveness applications, convincing the SBA to reimburse the lenders and leaving him in the clear.

Palla’s Ponzi-like scheme unraveled in 2024, when investigators found him controlling six brokerage accounts.