US man from Pak accused of fraudulently obtaining $ 5.6 million loan

A man of Pak origin was arrested for fraudulently obtaining a $ 5.6 million loan to help small businesses during the coronavirus pandemic.

Azhar Sarwar Rana, 30, of New Jersey, is charged with one count of bank fraud and one count of money laundering. He was arrested on December 12, after booking a flight the same day to Pakistan.

Rana made her first videoconference appearance on Monday before US investigating magistrate James B Clark III and was held without bail.

According to the documents filed in this case and the statements made in court, Rana submitted a fraudulent paycheck protection program (PPP) loan application to a lender on behalf of a legal person, Azhar Sarwar Rana. LLC, which is said to have invested in real estate development.

The app falsified payroll and tax information and included inconsistent lists internally of the number of employees at the company. New Jersey Department of Labor records showed that Azhar Sarwar Rana LLC paid no wages in 2019 and that the minimum wage he would have paid in 2020 was primarily for people with submitted Social Security numbers. did not match their submitted names.

Based on Rana’s alleged misrepresentation, the lender approved Rana’s PPP loan application and provided Azhar Sarwar Rana LLC with approximately $ 5.6 million. COVID-19[female[feminine emergency relief fund for small businesses in difficulty.

Rana used the proceeds from the fraudulently obtained PPP loan to pay for many personal expenses, including investing millions in the stock market, making a payment at a luxury car dealership, and sending hundreds of thousands of dollars to accounts in Pakistan.

The CARES (Coronavirus Aid, Relief, and Economic Security) law is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the pandemic of COVID-19.