Eastside Tech Executive Sentenced For COVID Relief Fraud Scheme
SEATTLE — A Clyde Hill man was sentenced to prison Tuesday, five months after he pleaded guilty to obtaining nearly $2 million in fraudulent COVID-19 relief loans from the Small Business Administration, Paycheck Protection Program and the CARES Act.
According to federal prosecutors, Mukund Mohan, 48, pleaded guilty to wire fraud and money laundering charges in March. Mohan was arrested last summer after submitting eight fraudulent applications seeking more than $5.5 million in federal funds. Prosecutors said Mohan sent fake or altered documents that purported to show his company, Mahenjo Inc., had dozens of employees on the payroll and paid million in wages and payroll taxes.
"In truth, Mohan purchased Mahenjo in May 2020 and, at the time he purchased the company, it had no employees and no business activity," the U.S. Attorney's Office wrote. "The incorporation documents he submitted to the lender were altered and the federal tax filings he submitted were fake."
As the Associated Press reports, Mohan previously held positions at Microsoft and Amazon and most recently worked as the chief of technology for BuildDirect, where his salary exceeded $200,000. Ultimately, prosecutors said five of Mohan's fraudulent applications were approved and he received nearly $1.8 million.
https://www.msn.com/en-us/money/smallbusiness/eastside-tech-executive-sentenced-for-covid-relief-fraud-scheme/ar-AANHA5j