Denver man charged with COVID relief loan fraud | USAO-CO
DENVER – The United States Attorney’s Office for the District of Colorado announced that Anthony Zaghab, 52, of Denver, was arraigned today on charges relating to more than $ 700,000 in COVID relief loans and unemployment insurance obtained fraudulently. He was charged with wire fraud.
According to allegations in information filed in federal court, as of April 2020, Zaghab has submitted bogus and fraudulent Economic Disaster Loan (“EIDL”) applications and applications for the Bank’s Check Protection Program. payroll (“PPP”) to the Small Business Administration and an approved lender. In February 2021, he had submitted fraudulent claims that brought him $ 660,000 in payments. Zaghab also claimed and received over $ 40,000 in unemployment insurance benefits on behalf of ineligible family members without their knowledge or consent.
Zaghab owned or controlled several legal persons. He also claimed to own or control several other entities bearing his name and the names of his family members. In loan applications for these entities, Zaghab falsely stated the number of employees, assumed gross income, and assumed cost of goods sold. Zaghab also applied for and obtained an EIDL for a fictitious business entity named after her late father. In addition, Zaghab has sought and attempted to obtain economic disaster loans on behalf of fictitious or purported business entities on behalf of family members, without the knowledge or consent of such family members.
Zaghab submitted a PPP application in June 2020 for a company called “Anthony Zaghab”. He falsely represented the date of creation of the company and its monthly payroll. He received a PPP loan in the amount of $ 20,833. Zaghab applied for and received a second PPP loan of $ 20,832 for “Anthony Zaghab” in February 2021. He received two more PPP loans of over $ 20,830 each for a shell business on behalf of a family member.
Zaghab also applied for and received approximately $ 41,500 in Colorado Pandemic Unemployment Assistance (“PUA”) for ineligible family members without their knowledge and consent. These family members included his mother and sister, both of whom resided outside the United States, and his late father.
The charges contained in the Information are allegations. The defendant is presumed innocent until proven guilty.
The American secret services have investigated this case. Deputy US prosecutors Martha Paluch and Rebecca Weber are handling the prosecution.
File number: 21-cr-00188-RBJ
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