By: Richard L. Smith
A Florida man was sentenced today to 36 months in prison for fraudulently obtaining over $2.4 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loan (EIDL) payments, U.S. Attorney Philip R. Sellinger announced.
Mohamed A. Awad, 61, of Ocala, Florida, pleaded guilty on November 20, 2023, before Judge Michael A. Shipp to charges of wire fraud and money laundering.
Judge Shipp imposed the sentence Wednesday in Trenton federal court.
According to court documents and statements made in court, Awad engaged in a scheme to illegally obtain COVID-19 relief funds under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
This federal law, enacted on March 29, 2020, was designed to provide emergency financial assistance to Americans affected by the economic impact of the COVID-19 pandemic.
Awad submitted fraudulent loan applications, fabricating the number of employees and misrepresenting company information to induce lenders to approve PPP and EIDL loans.
He also submitted falsified tax documents in support of these applications. IRS records confirmed that none of the purported tax documents were ever filed with the IRS.
Awad then transferred the loan proceeds among various bank accounts he controlled, withdrew significant amounts in cash, and transferred funds out of the country via wire transfers to banks in Egypt.
In addition to the prison term, Judge Shipp sentenced Awad to three years of supervised release and ordered restitution of $2.41 million and forfeiture of $1.49 million.