By: Richard L. Smith
Atlantic County resident Mr. Luquay Zahir, 49, from Atlantic City, was arrested Thursday for allegedly committing fraud related to COVID-19 relief efforts, according to U.S. Attorney Philip R. Sellinger.
Charged with making false statements to the U.S. Small Business Administration (SBA) and wire fraud, federal officials said Zahir is set to appear before U.S. Magistrate Judge Elizabeth A. Pascal in Camden federal court this afternoon.
He was released on a $100,000 unsecured bond.
Court documents reveal that Zahir, who worked as the Coordinator for the Resident Opportunity and Self Sufficiency (ROSS) program at the Atlantic City Housing Authority and Urban Redevelopment Agency, is accused of improperly securing over $30,000 through the Paycheck Protection Program loan and Economic Injury Disaster Loan advance under the Coronavirus Aid, Relief, and Economic Security Act during 2020 and 2021.
The charges brought against him could lead to severe penalties if convicted.
The false statement charge carries a potential maximum of two years in prison and a $250,000 fine, while the wire fraud charge could result in up to 20 years in prison and the same fine.
The arrest was the culmination of investigations by the FBI Newark Atlantic City Resident Agency and the SBA's Office of the Inspector General, led respectively by Special Agent in Charge James E. Dennehy and SBA investigators.
