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On Friday, July 14, the Eastern District of New York (EDNY) of the US Attorney’s Office announced Rami Saab’s guilty plea to charges of conspiracy to commit wire fraud.
Saab, a 44-year-old from Glen Cove, was accused of stealing $9.5 million from banks and the Small Business Association (SBA) over the course of one year by creating fake companies so that he could claim COVID-19 relief loans.
According to the charges, between May 2020 and May 2021, Saab allegedly worked with others to fraudulently apply for over 20 Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDLP) loans.
However, the businesses Saab claimed ownership of on the applications were all fake.
Also called “shell companies,” these entities claimed made-up numbers of employees, payroll costs, and even how the company planned to use the relief money.
These applications were purposefully designed to mislead both the SBA and banks who were administering the relief loans, the EDNY’s Office said.
In all, the 20 loans Saab applied for and received for the fake companies totaled in excess of $9.5 million.
Once he had the money, the EDNY's Office alleged that Saab transferred it between multiple accounts in an attempt to conceal the nature and source of the funds. He also used this laundered money to purchase things for himself and others.
“Saab pocketed nearly $10 million in ill-gotten gains by exploiting benefits meant to help those truly in need,” said Thomas M. Fattorusso, the IRS Criminal Investigation Special Agent-in-Charge.
“Criminals like Saab continue to seek the quickest way to make a buck, regardless of the rule of law or those who may be victimized in the process.”
Saab’s sentencing date has not been released; however, he faces up to 20 years in prison, as well as both a $250,000 fine and restitution of $9,668,508.
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