CHARLOTTE, NC (QUEEN CITY NEWS) – A man and his son were found guilty of multiple counts on Thursday after authorities accused them of obtaining more than $1.7 million in PPP loans through through fraudulent loan applications through a restaurant in Charlotte.
The Justice Department has accused Izzat Freitekh, his son Tarik Freitekh, of obtaining $1.7 million through fraudulent PPP loans by submitting false claims by three companies, including La Shish Kabob restaurant and La Shish Catering .
The men were each charged with one count of conspiracy to commit wire fraud and one count of bank fraud. Izzat Freitekh was also charged with one count of misrepresentation.
There was also a request that included fraudulent IRS tax documents submitted on behalf of Green Apple Catering LLC (Green Apple), indicating that the restaurant paid $4.8 million to employees in 2019, despite evidence that the company did not exist before March 2020, the DOJ said.
A claim containing false company salary information and fraudulent IRS tax documentation was also submitted on behalf of Aroma Packaging Systems.
According to evidence presented during the trial, the father and son duo also engaged in illegal monetary transactions with the money they obtained, including paying $30,000 to family members.
The DOJ said the former Freitekh also made false statements to law enforcement officials, claiming that a company called “Kyber Capitol” was responsible for submitting PPP loan applications.
“The bad guys borrow and don’t repay, but in the case of the Freitekhs, they also lie to cover up the fraud,” U.S. Attorney King said. “This father and son duo exploited a national emergency for their own benefit, then attempted to obstruct justice to avoid punishment.”
The DOJ said last December that it had recovered about $1.3 million of PPP funds disbursed in the case.
Izatt Freitekh was found guilty of one count of conspiracy to commit money laundering, three counts of money laundering and one count of misrepresentation. Prosecutors said he faces up to 10 years in prison for conspiracy to commit money laundering, 10 years in prison for each of the money laundering counts and five years in prison for the misrepresentation leader.
Tarik Freitekh was found guilty of one count of conspiracy to commit wire fraud, one count of bank fraud, one count of conspiracy to commit money laundering, one count of laundering money and one count of falsification and concealment of material facts. Prosecutors said he faced up to 30 years in prison for bank fraud, 20 years in prison for wire fraud and money laundering conspiracy, 10 years in prison for money laundering and five years in prison for forgery material facts. .