A New York-based tax preparer and his client have been charged with a $13 million Paycheck Protection Program (PPP) loan scheme in New York, authorities announced on [current date].
Sandeep Grover, 54, of Massapequa, New York, and Shikha Sehgal, 43, of Deer Park, New York, are accused of submitting more than 100 fake applications to seven financial institutions, resulting in the fraudulent acquisition of over $13 million in government-backed PPP loans. The loans were designed to aid small businesses hit by the COVID-19 pandemic.
According to the complaint, Grover, who owns Excellent Business Services Inc. (EBS), a tax preparation business in Seaford, New York, used his business to steal millions of dollars from the PPP program. He allegedly recruited Sehgal and others to open bank accounts for shell companies and create fake invoices to support the loan applications.
Grover is also accused of misusing the personally identifiable information of one of his employees to obtain a loan.
The defendants face charges of major fraud against the United States, conspiracy to commit wire fraud and bank fraud, and aggravated identity theft. If convicted, Grover and Sehgal could face up to 30 years in prison and fines of up to $1 million.
U.S. Attorney Damian Williams stated that Grover allegedly used his tax preparation business to steal millions of dollars from the PPP program, which was created to aid struggling small businesses during the pandemic.
FBI Assistant Director-in-Charge Michael J. Driscoll added that the defendants allegedly devised a scheme to exploit the PPP program for millions of dollars for personal use, rather than qualifying expenses.
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Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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