Home National Weather Severna Park man accused of wire fraud in $250k loan application scam – Baltimore Sun

Severna Park man accused of wire fraud in $250k loan application scam – Baltimore Sun

by DrewLUD
14 views



Federal prosecutors filed wire fraud charges Monday against a Severna Park man they say obtained a small business loan under false pretenses, paying a 30% kickback to an unnamed person who helped file the loan application and a fraudulent tax form.

Charges filed in U.S. District Court against Ayaz Qureshi, who is listed as the agent for Yazee Inc., accuse him of obtaining over $250,000 in Paycheck Protection Program loan funds for the company in March 2021 and paying $75,000 to a person only identified as “A.S.” in exchange for submitting the PPP loan application.

Federal prosecutors said “A.S.” is a Baltimore resident who ran a purported financial services business.

The loan application claimed the company had over $100,000 in monthly payroll expenses to a total of 16 employees in 2019, prosecutors said, when in reality the company did not pay any wages to any employees.

In a court filing, prosecutors said the unnamed person fabricated a false unemployment tax form, which was never filed with the Internal Revenue Service, claiming that Yazee Inc. paid over $1.2 million in wages to employees in 2019, while the company never paid unemployment tax or withhold any federal income tax for an employee. The bogus form was intended to circumvent a bank’s requirement that borrowers submit documentation, prosecutors said.

Qureshi, 53, says he was scammed by the accountant, whom he only knew as “Adam.” The accountant misled him about the loan, said Qureshi, a native of Pakistan. He said he simply needed a loan to help his struggling business and did not understand the accountant was arranging a forgivable PPP loan under false pretenses.

“I didn’t buy anything new; I’m still wearing old shoes,” Qureshi said, adding that he was hoping to use the loan money, which he believed was to be paid back, to pay for his children’s education before he realized he was tricked.

“I don’t want to give them bad money,” he said.

When Qureshi asked “A.S.” to return the money to the government, the purported accountant demanded a 30% kickback, he said.

“I was an idiot; I trusted him,” Qureshi said.

Qureshi is scheduled for an arraignment on Oct. 12 before U.S. District Judge Richard D. Bennett. He did not have an attorney listed in court records.



Source link
Source: Baltimore Sun