By: Richard L. Smith
A Rutherford man has been indicted on multiple charges related to the fraudulent acquisition of hundreds of thousands of dollars in COVID-19 relief funds.
Federal officials, including U.S. Attorney Philip R. Sellinger, announced the indictment Thursday.
Malak Faltawws, also known as “Mark Andrews,” 47, is facing three counts of wire fraud and two counts of money laundering.
He appeared before U.S. Magistrate Judge André M. Espinosa in Newark federal court earlier today and was released on a $100,000 unsecured bond.
According to court filings and statements presented during the proceedings, Faltawws is accused of engaging in a scheme to defraud government programs designed to support small businesses impacted by the COVID-19 pandemic.
Between March 2020 and November 2021, Faltawws allegedly submitted fraudulent applications to obtain Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) funds.
These applications reportedly exaggerated his businesses' revenue, payroll, and number of employees in order to secure the emergency relief funds.
Once the funds were disbursed, authorities claim that Faltawws diverted the money for personal use rather than using it to support his businesses, as the programs intended.
If convicted, Faltawws faces severe penalties. Each count of wire fraud carries a maximum sentence of 20 years in prison, while each money laundering charge carries up to 10 years.
Additionally, each charge could result in a fine of $250,000 or twice the amount of the financial gain or loss, depending on which is greater.
The case is being prosecuted as part of a larger effort by federal officials to crack down on fraud in COVID-19 relief programs designed to assist struggling small businesses during the pandemic.