A Texas couple is accused of defrauding the Paycheck Protection Program for more than $684,000.
In March 2020, the Paycheck Protection Program, also known as PPP, was established under the CARES Act to provide emergency funds to small businesses suffering economic impact due to the COVID-19 pandemic. Eligible businesses can borrow up to 2.5 times their average monthly payroll. The forgivable loans could be used to cover payroll, rent, and other expenses.
The couple allegedly submitted fraudulent PPP loan applications for $1.85 million on the behalf of businesses that did not qualify, according to the indictment.
Additional charges were also filed against Muyej, including eight counts of money laundering and one count of theft of government funds, and Scott was charged with one count of false use of a passport.
The applications reportedly falsified the number of employees by listing names of people not actually employed at the businesses and fabricated monthly payrolls.
Muyej and Scott allegedly used a single bank statement to reflect the accountholder’s name and information to reflect information for each of the PPP loan applicants.
They received two loans for a total of $684,158.33, which Muyej is accused of laundering.
In August 2020, Muyej fraudulently received unemployment insurance benefits through the COVID relief program in the state of Nevada.
Muyej and Scott are facing up to 20 years each in federal prison if they are found guilty of conspiracy to commit wire fraud.
Muyej could also get 20 years for each count of money laundering and 10 years for theft of government funds if he’s convicted. Scott faces an additional 10 years if she’s found guilty of false use of a passport.
The case was investigated by the FBI Dallas Field Office and State Department’s Diplomatic Security Service.
