A federal grand jury in Chicago has indicted five individuals for allegedly securing millions of dollars in small business loans and other benefits through fraudulent means under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to an indictment unsealed this week in the Northern District of Illinois, George Kavroulakis, Athanasios Intzes, Adam Jaber, Hassan Kurdi, and Abdallah Issa are accused of fraud involving three relief programs established by the CARES Act: the Paycheck Protection Program (PPP), Economic Injury Disaster Loan program (EIDL), and Pandemic Unemployment Assistance program (PUA). The indictment charges Kavroulakis, 33, of Tinley Park, Ill., with nine counts of wire fraud; Intzes, 35, of Orland Park, Ill., with five counts; Jaber, 34, of Chicago, with nine counts; Kurdi, 35, of Chicago, with four counts; and Issa, 26, also of Tinley Park, with four counts. Each count carries a potential sentence of up to 20 years in federal prison.
All defendants have pleaded not guilty. A status hearing is scheduled for August 14 before U.S. District Judge Lindsay C. Jenkins.
The indictment alleges that the defendants submitted numerous fraudulent applications for PPP loans and EIDL funds during 2020 and 2021 on behalf of themselves as well as others and corporate entities purportedly owned by some defendants. The applications allegedly included false statements about company employees numbers, revenue figures, payroll amounts and other expenses.
Additionally, Kavroulakis, Jaber and Intzes are accused in the indictment of causing approximately $750,000 in fraudulent PUA benefits to be disbursed in Illinois and California by submitting false information regarding unemployment status for themselves or others.
Prosecutors allege much of the proceeds from these activities was used personally by the defendants for purchases such as multiple Mercedes-Benz vehicles and a Rolex Submariner watch.
The case was announced by Andrew S. Boutros—United States Attorney for the Northern District of Illinois—alongside Douglas S. DePodesta (FBI Chicago Field Office), Robert Collins (Small Business Administration Office of Inspector General), and Megan Howell (U.S. Department of Labor Office of Inspector General). Assistant U.S. Attorneys Edward A. Liva Jr. and Beth E. Palmer represent the government.
“The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.”
Members of the public who have information about attempted Covid-19-related fraud are encouraged to report it via phone at 866-720-5721 or online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
