Seattle area CTO pleads guilty to scheme to obtain and launder $ 5.5 million in PPP loans
A Washington tech executive indicted in a scheme to obtain more than $ 5.5 million in Paycheck Protection Program (PPP) loans and launder the proceeds pleaded guilty on Monday.
Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington said in a Justice Department statement Press release this Mukund Mohan, 48, of Clyde Hill, Wash., Has submitted at least eight fraudulent PPP loan applications on behalf of six different companies to federally insured financial institutions.
In support of the fraudulent loan applications, Mohan made numerous false and misleading statements about the companies’ business operations and respective salary expenses, according to the DOJ.
Mohan submitted false documents and amended documents, including false federal income tax returns and amended incorporation documents, and made a false statement to a lender, for example, that in 2019 his company Mahenjo Inc. had dozens of employees and paid millions of dollars in wages and payroll taxes. . In truth, Mohan bought Mahenjo over the internet in May 2020, and at the time he bought the company, she had no employees and no business activity.
Mohan’s prior technical experience includes a stint at Amazon Business, where he was Director of Product Management. He was also previously Director of Microsoft Ventures and Director of Engineering for Microsoft’s cloud and enterprise operations.
Mohan was billed in July 2020 and sentencing is scheduled for July 20. Under the terms of the plea deal, prosecutors will recommend the lower end of the range for federal sentencing guidelines, according to the DOJ. The prosecution and defense will recommend that Mohan pay a fine of $ 100,000 on top of his restitution obligation.
Electronic fraud is punishable by up to 20 years in prison. Money laundering is punishable by up to 10 years in prison.