Quamdeen Amuwo, $2.9 Million Covid-Relief Fraud, Illinois 2023

Covid-Relief Fraud Rocks Chicago: $2.9 Million Scam Uncovered

A scheme to defraud the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program has led to a significant blow for a Chicago man. Quamdeen Amuwo, 41, has been convicted of participating in this scheme and has been sentenced to 5.5 years in federal prison.

From April to November 2020, Amuwo submitted numerous applications for loans on behalf of businesses that he and others purportedly owned. These applications contained false statements and misrepresentations concerning the purported entities’ owners, employees, revenues, costs, and dates of establishment.

In support of his applications, Amuwo provided false business registration forms and bogus personal identifying information of the purported owners. He used this scheme to cause the SBA to disburse at least $2.9 million in EIDL loans and grants into bank accounts that he and others controlled.

Amuwo used the money to make cash withdrawals, transfers, and purchases for his personal benefit. A federal jury in June convicted Amuwo on all twelve wire fraud counts against him.

In addition to the prison sentence, U.S. District Judge Edmond E. Chang ordered Amuwo to pay more than $2.9 million in restitution. This sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. ‘Wes’ Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.

Substantial assistance was provided by the SBA’s Office of Inspector General. The government was represented by Assistant U.S. Attorneys Heidi Manschreck and Matthew Moyer. Anyone with information about attempted fraud involving Covid-19 can report it to the National Center for Disaster Fraud at (866) 720-5721, or by filing a complaint online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. The case highlights the importance of vigilance in preventing and detecting Covid-relief fraud.

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