Tech Exec pleads guilty to PPP fraud
A Washington man pleaded guilty today to wire fraud and money laundering as part of his scheme to get more than $ 5.5 million in Paycheck Protection Program (P3) loans and to the whitening of the product.
Mukund Mohan, 48, was indicted in July 2020. According to the plea agreement and other documents filed in the case, Mohan has submitted at least eight fraudulent PPP loan applications on behalf of six different companies to institutions financial services provided by the federal government.
In support of the fraudulent loan applications, Mohan made numerous false and misleading statements about the companies’ business operations and respective salary expenses.
Mohan submitted false and amended documents, including false federal income tax returns and amended incorporation documents.
For example, Mohan falsely told a lender that in 2019 his company Mahenjo Inc. had dozens of employees and paid millions of dollars in salaries and payroll taxes.
In support of Mahenjo’s loan application, Mohan submitted incorporation documents showing he incorporated the company in 2018 and filed federal unemployment tax forms for 2019.
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. The incorporation documents he submitted to the lender were changed and the federal income tax returns he submitted were false.
Swift action by federal law enforcement resulted in the seizure of almost all of the federal loan funds from Mohan’s accounts.
Mohan is due to be sentenced on July 20 and faces a maximum sentence of 20 years in prison. A federal district court judge will determine any sentence after considering US sentencing guidelines and other statutory factors.