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Sandeep Grover, age 54, of Massapequa, is charged with major fraud against the US and conspiracy to commit wire fraud and bank fraud, according to an indictment that was unsealed by the US Attorney’s Office in the Southern District on Wednesday, May 24.
Grover is the owner of Excellent Business Services Inc., a tax preparation business based in Seaford.
Prosecutors allege that between April 2020 and June 2021, he submitted over 100 applications for Paycheck Protection Program (PPP) loans using false information to at least seven financial institutions.
The PPP was established by Congress in 2020 to provide relief to small businesses impacted by the COVID-19 pandemic.
According to prosecutors, Grover requested loans on behalf of dozens of his own companies, along with client companies for which he created false IRS filings.
His applications asserted that each business had multiple employees and spent tens of thousands of dollars in monthly payroll, when in reality they did not report wages to the Social Security Administration, prosecutors allege.
Grover was aided in his scheme by others, including co-conspirator Shikha Sehgal, age 43, of Deer Park, according to investigators.
Together, the group allegedly opened bank accounts for companies that did no business, created fake invoices, and submitted fraudulent applications for numerous PPP loans.
Grover also used one of his employees’ personal information to obtain a loan, prosecutors said.
Proceeds from the scheme - which totaled over $13 million - were allegedly spent on new property, paying off personal loans, and paying expenses for other companies under Grover’s control.
“The defendants allegedly devised a scheme to exploit the Paycheck Protection Program for millions of dollars for personal use rather than qualifying expenses,” FBI Assistant Director-in-Charge Michael Driscoll said in a statement.
“Fraudulent schemes like these defraud not only a program intended to help small businesses weather a global pandemic but also the United States' taxpayers.”
Grover and Sehgal are each charged with one count of major fraud against the US and one count of conspiracy to commit wire fraud and bank fraud.
Grover is also charged with one count of aggravated identity theft.
If convicted, they could spend up to 40 years in federal prison.
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