Tech Exec Sentenced To 2 Years For $ 1.8 Million Loan Fraud

0
27

[ad_1]

  • A Seattle-based tech executive was sentenced to two years in prison for PPP loan fraud.
  • Mukund Mohan previously worked at Microsoft and Amazon and most recently was CTO of an e-commerce company.
  • He was found guilty of filing eight applications for $ 5.5 million and received $ 1.8 million.

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 program, demanding $ 5.5 million for the companies he allegedly ran, and in fact received nearly $ 1.8 million.

Mohan’s lawyers demanded a 60-day sentence, noting that Mohan had no criminal record and spent only $ 16,500 of that money. They said that his actions, possibly driven by mental health problems, were such an aberration 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, the current special agent in charge of the IRS’s criminal investigation, attributed the crime of greed to Mohan, stating that when people abuse such benefit programs, “they steal from the most vulnerable.”

[ad_2]

Source link