Ahmed Sary, a resident of Baltimore, Maryland, has been sentenced to seven years in federal prison, followed by one year of home detention and three years of supervised release. This judgment comes in response to his involvement in a scheme to fraudulently obtain nearly $18 million in loans meant to aid businesses struggling during the Covid-19 pandemic. The fraudulent activities spanned from April 2020 to January 2022, targeting programs like the Paycheck Protection Program and Economic Injury Disaster Loan, established under the Coronavirus Aid, Relief, and Economic Security Act.
Coordinated by entities including the U.S. Attorney's Office for the District of Maryland, the FBI's Baltimore Field Office, and the Small Business Administration Office of Inspector General (SBA-OIG), the investigation revealed a complex web of deceit. Sary and his accomplices submitted falsified applications, inflating employee numbers, payroll costs, and revenue figures for nonexistent businesses. These applications led to the approval and disbursement of over $17.9 million in funds.
The scheme extended beyond mere paperwork manipulation. Sary orchestrated a system where loan recipients, under his direction, provided blank-signed checks that he would then fill out and deposit, facilitating money laundering of the fraudulently obtained funds. Moreover, he used approximately $959,559 of these funds directly for personal gain, indulging in luxurious international travel, including stays at prestigious hotels such as the Four Seasons, and purchasing property abroad.
To further cover his tracks, Sary engaged in setting up payroll services for some of the fake businesses, creating false documentation to support loan forgiveness applications. These actions were part of a broader effort to maintain the illusion that the funds were used for legitimate business purposes, thus evading detection.
The sentencing underscores the ongoing efforts of the Department of Justice's COVID-19 Fraud Enforcement Task Force, established to combat pandemic-related fraud across the United States. The strike forces, employing prosecutor-led teams and data analytics, target large-scale fraudulent activities that exploit relief programs intended to aid American businesses and individuals during times of economic crisis.
