Rami Saab, COVID-19 Loan Fraud, New York 2023

Rami Saab, 38, of Glen Cove, New York, Pleads Guilty to Massive COVID-19 Loan Fraud

A Long Island man has been brought to justice for his role in a massive COVID-19 loan fraud scheme. Rami Saab, 38, of Glen Cove, New York, pleaded guilty to conspiracy to commit wire fraud in connection with his participation in a scheme to defraud banks and the Small Business Association (SBA) of millions of dollars’ worth of small business loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDLP).

According to court filings, between May 2020 and May 2021, Saab, working with others, fraudulently applied for, and received, at least 20 PPP and EIDLP loans totaling in excess of $9,500,000, on behalf of numerous corporate entities under his control. Saab submitted applications on behalf of these entities even though these were not, in fact, real businesses. Instead, these entities were “shell companies” that claimed false numbers of employees, payroll costs, and intended use of the loan proceeds – all of which was specifically designed to mislead the SBA and numerous banks administering the PPP and EIDLP loan programs.

As a result of his actions, Saab faces up to 20 years in prison, as well as restitution of $9,668,508 and a fine of up to $250,000. United States Attorney Breon Peace stated, “Using fraud and deceit, the defendant callously stole millions of dollars during an unprecedented public health crisis at the expense of American small business owners.”

HSI Special Agent-in-Charge Ivan J. Arvelo added, “As alleged, Rami SAAB stole nearly $10 million dollars in relief money intended for small businesses impacted by the COVID-19 global pandemic, for his own enrichment. This is an egregious case of fraud perpetrated by an individual who pilfered a program intended for those who truly needed emergency financial assistance.”

The case against Saab is a reminder that those who engage in blatant theft of taxpayer dollars intended to assist legitimate businesses and their employees during the COVID-19 pandemic will be aggressively prosecuted by the United States Attorney’s Office.

At a press conference held earlier today, officials announced the guilty plea and expressed their commitment to rooting out such thievery and ensuring violators are prosecuted to the fullest extent of the law.

Saab is expected to be sentenced in the coming months. The case is a prime example of the ongoing efforts to combat pandemic-related fraud and hold individuals accountable for their actions.

Defendant: Rami Saab

Criminal Charge: Conspiracy to commit wire fraud

Location: Glen Cove, New York

Date: May 2023 (plea date)

Sentence: Up to 20 years in prison, $9,668,508 in restitution, and a fine of up to $250,000

Source: https://www.justice.gov/usao-edny/pr/long-island-man-pleads-guilty-massive-covid-19-loan-fraud