A man from Ashburn, Virginia, pleaded guilty to a fraud scheme in which prosecutors say he and his wife used counterfeit companies to apply for more than $ 6 million from a federal loan program that small business had during the coronavirus crisis. Pandemic helps.
A man from Ashburn, Virginia, pleaded guilty to a fraud scheme in which prosecutors say he and his wife used fake companies to apply for more than $ 6 million from a federal loan program to help small businesses during the coronavirus crisis. Pandemic help.
Tarik Jaafar, 42, pleaded guilty to defrauding various financial institutions and defrauding the US government, according to a U.S. Attorney’s Office for the Eastern District of Virginia.
Prosecutors said Jaafar and his wife, 43-year-old Monika Magdalena Jaworska, used four different letterbox companies to submit 18 separate loan applications under the paycheck protection program, which was designed to help small businesses pay their employees and keep their doors open keep.
In court documents, prosecutors said the couple alleged in paperwork that their companies employed dozens of people, even though the companies “did not conduct legitimate business and existed only as a means of carrying out the fraud scheme.”
All in all, the couple secured $ 6.64 million in federal loans and eventually raised $ 1.4 million from a total of four loans through three different banks.
It is unclear what gave the authorities a lead, but court documents show that law enforcement officers visited the couple’s home in May and ended up speaking with the couple’s lawyer multiple times, including on June 16. The next day Jaafar bought two one-way tickets to Poland called public prosecutors.
The couple were arrested at John F. Kennedy International Airport in New York on June 20 when authorities said they were trying to flee to Poland.
Most of the funds had already been frozen by the banks the couple had deposited the loan money with, but prosecutors said Jaafar and Jaworska were able to withdraw $ 30,000 in cash, which was confiscated by authorities when the couple was arrested.
Jaafar faces a maximum of five years in prison if convicted in November.
The proceedings against his wife are still ongoing.
Like WTOP on Facebook and follow @WTOP on Twitter to discuss this and other articles.
Get breaking news and daily headlines in your email inbox by signing up here.
© 2020 WTOP. All rights reserved. This website is not intended for users located within the European Economic Area.