Making good on its pledge to aggressively combat the fraudulent use of COVID-19 stimulus funds, the Department of Justice has charged a third individual for allegedly seeking more than $10M in forgivable loans under the Paycheck Protection Program.

Shashank Rai of Beaumont, TX, was charged with wire fraud, bank fraud and making false statements to banks and the Small Business Administration (SBA). He is alleged to have sought millions of dollars in loans guaranteed by the SBA from two different banks by claiming to have 250 employees earning wages of approximately $1.2M per month when, in fact, no employees worked for his purported business.

The SBA Inspector General said that the SBA and its law enforcement partners “will aggressively investigate fraud in the Paycheck Protection Program. The nation’s small businesses are counting on this program, and we will safeguard it to maintain the public trust.”

The DOJ noted that a federal criminal complaint is merely an accusation and a defendant is presumed innocent unless and until proven guilty.

Read the DOJ Press Release here.