A Washington state technology executive was taken into custody last week and charged with fraudulently seeking more than $5.5 million in Paycheck Protection Program (PPP) loans and laundering the proceeds, according to a release circulated Monday by the inspector general office of the federal bank deposit insurer.
The PPP was established within the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to facilitate funding for forgivable loans to small businesses for job retention and certain other expenses amid the coronavirus (COVID-19) pandemic.
The release issued Monday by the Federal Deposit Insurance Corp. (FDIC) Office of Inspector General (OIG) states that Mukund Mohan, 48, of Clyde Hill, Wash., was taken into custody Thursday and charged by criminal complaint in the Western District of Washington with one count of wire fraud and one count of money laundering.
The complaint alleges that Mohan submitted at least eight fraudulent PPP loan applications on behalf of six different companies to federally insured financial institutions. In connection with those applications, he made numerous false and misleading statements about the companies’ respective business operations and payroll expenses; and submitted fake and altered documents, including fake federal tax filings and altered incorporation documents.
According to the release, the complaint further alleges that Mohan transferred at least $231,000 in fraudulently-obtained loan proceeds to his personal brokerage account for his personal benefit.
Washington Tech Executive Charged with COVID-Relief Fraud and Money Laundering