Luquay Zahir, Covid-19 Relief Funds Fraud, New Jersey 2021

Former Atlantic City Housing Authority Coordinator Admits to Covid-19 Relief Funds Fraud

Camden, NJ – A former Atlantic City Housing Authority coordinator has admitted to fraudulently applying for and obtaining Covid-19 relief funds, Acting U.S. Attorney Vikas Khanna announced. Luquay Zahir, 50, of Atlantic City, New Jersey, pleaded guilty before U.S. District Judge Karen M. Williams to two counts of an information charging him with making false statements to influence the U.S. Small Business Administration (“SBA”) and wire fraud.

According to documents filed in the case and statements made in court, Zahir, then the Ross Family Service Coordinator for the Atlantic City Housing Authority and Urban Redevelopment Agency, fraudulently obtained more than $30,000 through a Paycheck Protection Program loan and Economic Injury Disaster Loan advance issued under the Coronavirus Aid, Relief, and Economic Security Act.

The count of making false statements to influence the SBA carries a maximum potential penalty of two years in prison and a maximum fine of $250,000. The count of wire fraud carries a maximum potential penalty of 20 years in prison and a maximum fine of $250,000.

Acting U.S. Attorney Khanna credited special agents of the FBI, Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Brian J. Driscoll; and special agents of SBA Office of Inspector General’s Eastern Region, under the direction of Special Agent in Charge Amaleka McCall-Braithwaite, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Branch Office, working in conjunction with the Special Prosecutions Division in Newark.

Zahir’s guilty plea is a significant step towards holding accountable those who would seek to exploit the Covid-19 pandemic for personal gain. As Acting U.S. Attorney Khanna emphasized, the U.S. Attorney’s Office will continue to vigorously pursue those who engage in such conduct.

Related Federal Cases