Farooq Khan Exploited Relief Programs, Defrauded SBA of Millions
Farooq Khan, a 31-year-old Chicago tax preparer, was sentenced Monday to 42 months in prison for orchestrating a $3.6 million fraud scheme targeting COVID-19 relief programs.
Operating through his company, Hannan Tax Services, Khan submitted at least 30 fraudulent applications for Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds between May 2020 and October 2021.
He falsified employee counts and tax records for non-operational companies, pocketing $1.2 million himself. Khan also attempted to secure an additional $588,900 for nonexistent businesses.
Ordered to pay $3.6 million in restitution, his guilty plea to wire fraud underscores the Justice Department’s crackdown on CARES Act abuse.
“This case exposes greed exploiting a national crisis,” said FBI Chicago’s Douglas S. DePodesta.
The investigation, led by the FBI and ICE-HSI, highlights the ongoing fight against pandemic-related fraud.
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