⏱ 2 min read
Malak Faltawws, a 49-year-old man from Rutherford, New Jersey, orchestrated a scheme to defraud COVID-19 relief programs of approximately $670,292. The scam, which took place from March 2020 through November 2021, involved submitting false applications to obtain loans and cash advances meant for distressed small businesses under the EIDL and PPP programs. Faltawws inflated his businesses’ revenue, payroll expenses, and number of employees to receive the fraudulent funds, which he then diverted for his personal gain.
Faltawws pleaded guilty to two counts of wire fraud and money laundering before U.S. District Judge Evelyn Padin in Newark Federal Court. On August 12, 2026, Judge Padin sentenced him to 24 months’ imprisonment, followed by three years of supervised release. Faltawws was also ordered to pay restitution of $670,292 and a fine of $10,000.
The investigation was led by special agents of the Internal Revenue Service – Criminal Investigation, Newark Field Office, under the direction of Jenifer L. Piovesan. The government was represented by Assistant U.S. Attorneys Farhana C. Melo of the Economic Crimes Unit in Newark.
The case is part of the Department of Justice’s efforts to combat fraud against the American people, particularly in relation to COVID-19 relief programs. The National Fraud Enforcement Division, established on April 7, is focused on investigating and prosecuting those who commit fraud against the government.
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: New Jersey
- Location: NJ
- Source: DOJ Press Release
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