Rami Saab, of Glen Cove, pleads guilty in $9.5M COVID loan fraud case
A Glen Cove man pleaded guilty Friday in federal court in Central Islip to creating phony businesses and fictitious employees as part of a scheme to steal more than $9.5 million in COVID-19 business loans.
Rami Saab, 44, faces 20 years in prison, restitution of $9,668,508 and a fine of up to $250,000 when he is sentenced, the U.S. Justice Department said in a news release.
Saab is scheduled for sentencing Oct. 27, a Justice Department spokesperson said in an email.
Attempts to reach Saab were unsuccessful. Phone numbers that appeared to be associated with Saab were disconnected or out of service.
“Using fraud and deceit, the defendant callously stole millions of dollars during an unprecedented public health crisis at the expense of American small-business owners,” Breon Peace, U.S. Attorney for the Eastern District of New York, which includes Long Island, said in a statement Friday.
Ivan J. Arvelo, Homeland Security Investigations special agent-in-charge, added, “This is an egregious case of fraud perpetrated by an individual who pilfered a program intended for those who truly needed emergency financial assistance.”
Court documents said Saab applied for at least 20 loans totaling more than $9.5 million from the Paycheck Protection Program and Economic Injury Disaster Loan Program, both created in 2020 by Congress and administered by the federal Small Business Administration to help companies make payroll and cover other expenses during the coronavirus pandemic.
Using real companies under his control, Saab submitted relief applications for fake shell corporations that claimed false numbers of employees and payroll costs, prosecutors said. After receiving the loans, Saab made numerous financial transactions designed to cover up the fraud, such as by transferring portions of the loan proceeds between bank accounts under his control, prosecutors said.
After funneling the proceeds through various bank accounts, Saab made cash withdrawals for his personal use and transferred other funds to unnamed “associates” overseas, according to the news release.
Nassau County police assisted in the investigation, which included agents from the Internal Revenue Service and the U.S. Treasury Department, the Justice Department said.
A Glen Cove man pleaded guilty Friday in federal court in Central Islip to creating phony businesses and fictitious employees as part of a scheme to steal more than $9.5 million in COVID-19 business loans.
Rami Saab, 44, faces 20 years in prison, restitution of $9,668,508 and a fine of up to $250,000 when he is sentenced, the U.S. Justice Department said in a news release.
Saab is scheduled for sentencing Oct. 27, a Justice Department spokesperson said in an email.
Attempts to reach Saab were unsuccessful. Phone numbers that appeared to be associated with Saab were disconnected or out of service.
“Using fraud and deceit, the defendant callously stole millions of dollars during an unprecedented public health crisis at the expense of American small-business owners,” Breon Peace, U.S. Attorney for the Eastern District of New York, which includes Long Island, said in a statement Friday.
Ivan J. Arvelo, Homeland Security Investigations special agent-in-charge, added, “This is an egregious case of fraud perpetrated by an individual who pilfered a program intended for those who truly needed emergency financial assistance.”
Court documents said Saab applied for at least 20 loans totaling more than $9.5 million from the Paycheck Protection Program and Economic Injury Disaster Loan Program, both created in 2020 by Congress and administered by the federal Small Business Administration to help companies make payroll and cover other expenses during the coronavirus pandemic.
Using real companies under his control, Saab submitted relief applications for fake shell corporations that claimed false numbers of employees and payroll costs, prosecutors said. After receiving the loans, Saab made numerous financial transactions designed to cover up the fraud, such as by transferring portions of the loan proceeds between bank accounts under his control, prosecutors said.
After funneling the proceeds through various bank accounts, Saab made cash withdrawals for his personal use and transferred other funds to unnamed “associates” overseas, according to the news release.
Nassau County police assisted in the investigation, which included agents from the Internal Revenue Service and the U.S. Treasury Department, the Justice Department said.
Carl MacGowan is a Long Island native who covers Brookhaven Town after having previously covered Smithtown, Suffolk County courts and numerous spot news and feature stories over his 20-plus year career at Newsday.
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