PPP Loan Fraud Leads to 2 Years of Technical Lead Jail



The Washington State Tech Leader was sentenced to two years in prison for fraudulently obtaining nearly $ 1.8 million in federal loans for COVID-19 disaster relief.

Clyde Hill’s Mukund Mohan previously worked for Microsoft and Amazon and was making more than $ 200,000 a year as head of technology for Canadian e-commerce company BuildDirect when he was arrested in July 2020.

The U.S. Attorney’s Office in Seattle said he filed eight fraudulent applications for a payroll protection loan, demanding $ 5.5 million for the companies he allegedly ran, and in fact received nearly $ 1.8 million.

Mohan’s lawyers sought a six-month sentence, noting that Mohan had no criminal record and spent only $ 16,500 of the money. They said his actions, possibly driven by mental health problems, were such a deviation for him that he passed out when federal agents knocked on his door.

Federal authorities managed to withdraw money from Mohan’s accounts. He returned the amount spent and received a $ 100,000 fine.

As part of the scheme, Mohan submitted fake and altered documents, including fake federal tax returns and altered articles of incorporation. He said that one of his companies had dozens of employees, when in fact there were none.

In a press release, Corinne Calve, acting special agent in charge of the IRS’s criminal investigations, attributed the crime of greed to Mohan, stating that when people abuse such benefit programs, “they steal from the most vulnerable.”


Source link