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A Discount Store in Houston Cashed 1,100 Fake Paychecks Worth $3 Million

HOUSTON — Amir Aqeel led a conspiracy that submitted 75 fraudulent Paycheck Protection Program loan applications in 2020, falsifying employee counts and payroll figures with fabricated bank records and fake federal tax forms. He conspired with at least 14 other people and paid some of them large kickbacks for their help. In December 2021, when 15 people had been charged, the Justice Department said the ring had sought more than $35 million and obtained about $18 million; by October 2023 it put the total obtained at more than $20 million.12

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To launder the money, the conspirators wrote checks from the PPP-funded companies to fake employees, payroll for workers who didn't exist. They then cashed those checks at Fascare International Inc., doing business as Almeda Discount Store, a check-cashing business owned by co-conspirator Siddiq Azeemuddin. More than 1,100 fake paychecks worth over $3 million were cashed at Almeda alone.12

Federal agents executed 45 seizure warrants in the case and seized, among other things, a residence, a Porsche and a Lamborghini bought with the loan money. Abdul Fatani, one of four defendants added by the December 2021 superseding indictment, distributed more than $500,000 in fraudulent proceeds to himself and other co-conspirators using the bogus payroll checks. He then laundered a share of it by moving funds from one of his bank accounts to another he controlled.132 The same indictment charged Aqeel with aggravated identity theft, alleging that he submitted applications using the identities of uninvolved people.1

A federal jury convicted Fatani in February 2023 of conspiracy to commit wire fraud, wire fraud, and money laundering. By then, 15 other people had pleaded guilty in the scheme.3

On October 2, 2023, the court sentenced Aqeel, the acknowledged leader, to 15 years in prison and ordered him to forfeit $5,583,111.48. The next day six co-conspirators were sentenced: Rifat Bajwa got three years, Pardeep Basra three years and five months, Khalid Abbas two and a half years, Richard Reuth two and a half years, Siddiq Azeemuddin two years, and Fatani, the one defendant convicted at trial, three years.2

Nine more followed in early 2024. In January, Raheel Malik got a year and six months, Nishant Patel two years and Harjeet Sing five years of probation. On February 12, Hamza Abbas got three years and eight months, Syed Ali two years, Muhammad Anis a year and nine months, Ammas Uddin and Arham Uddin a year and six months each, and Jesus Acosta Perez a year and a day. That made 16 people sentenced, all but Fatani on guilty pleas.4

U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas said Aqeel "engaged in one of the largest PPP conspiracies in the country." The case was investigated jointly by the SBA's Office of Inspector General, the Federal Housing Finance Agency's OIG, Homeland Security Investigations' Houston field office, the FDIC's OIG, and the Treasury Inspector General for Tax Administration.2

Documents cited

Notes

  1. Department of Justice, "Four Charged in $35 Million COVID-19 Relief Fraud Scheme" (original), December 15, 2021. ↩1 ↩2 ↩3 ↩4
  2. Department of Justice, "Leader of $20M COVID-19 Relief Fraud Ring Sentenced to 15 Years" (original), October 3, 2023. ↩1 ↩2 ↩3 ↩4 ↩5
  3. Department of Justice, "Man Convicted for Multimillion-Dollar COVID-19 Relief Fraud" (original), February 8, 2023. ↩1 ↩2
  4. Department of Justice, "Six Men Sentenced for Roles in $20M COVID-19 Relief Fraud Ring" (original), February 12, 2024. ↩
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