Indian American Rahul Shah applied for a bank loan fraudulently for nearly USD 4,00,000 in a forgivable Payback Protection Program. The loan is applied under the category of Small Business Administration under Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Businessman who is an Indian American owns many information technology companies in Chicago. He unlawfully made an attempt to take a loan of USD 400000. Rahul Shah aged 51, charged with a complaint in the Northern District for making false statements to a financial institute.
Shah submitted many false and fraudulent IRS documents including the IRS Form 1099-MISC. The documents he submitted showed that the funds were provided to the individuals who are in need. Later it was confirmed that no one received the relief funds from his company.
He also allegedly claimed the IRS Forms 941 is legal representing the quarterly payroll from his company expenses last year. When compared the documents he submitted to the financial institutes and the company’s IRS applications it is evident that Shah reported lower payroll expenses to the IRS. There is a significant difference between what he states in documents submitted and the examined calculations.
Any bank fraud and the false statement to a financial institute is punishable upto 30 years prison. Shah mentioned the purpose of the loan and designed as a lifeline to boost up the small business during COVID-19 crisis. The criminal intentions are to misuse the loan funds under the name of CARES Act.
The CARES Act was established on March 29,2020 to offer a helping hand to the stranded American across the nation during the coronavirus pandemic
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