New Jersey man admits to receiving fraudulent business loan from COVID in the amount of $ 5.6 million

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New Jersey man will spend years in federal prison after admitting he set up a fake company to get a $ 5.6 million government loan in the early days coronavirus last year’s pandemic.

Azhar Sarwar Rana, 30, of Newton, pleaded guilty to bank fraud and money laundering on Thursday, the US Attorney’s Office in New Jersey said in a statement.

Prosecutors said Rana applied for a $ 10 million salary protection program loan for his fake company Azhar Sarwar Rana LLC when he filed on April 6, 2020, using falsified payroll records and IRS tax filings.

As a result, in May 2020, he received $ 5,677,473 for a company he claimed was a development company, court documents say. Rana then spent the money on personal expenses, such as paying $ 13,000 to a BMW dealership. He also traded millions of dollars in securities and sent money to accounts in the names of family members – in Pakistan and elsewhere – according to the collection documents.

Authorities arrested Rahn on December 12, hours before the scheduled departure of a flight to Pakistan, booked earlier that day.

Rana’s verdict is due on November 3. The maximum penalty for bank fraud is 30 years, and for money laundering, 10 years.

PPP loans are part of the CARES (Coronavirus Relief, Relief and Economic Security) Act and must be used to cover wages, mortgage interest, rents and utilities.

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Jeff Goldman can be reached at jeff_goldman@njadvancemedia.com

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