Former Overland Park Man Indicted for $800,000 COVID Fraud Scheme

Summary

Announcement that Mirza Michael Reazuddin, a former Overland Park, Kansas, man, has been indicted by a federal grand jury for receiving more than $800,000 in fraudulent business loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The 11-count indictment was returned under seal on April 4, 2023, and unsealed upon Reazuddin's arrest and initial court appearance on Tuesday, April 25, in Atlanta, Georgia. It alleges that Reazuddin received two loans under the Paycheck Protection Program totaling $804,100 after claiming to own Grandview Hotel, LLC, which the indictment says ceased doing business in March 2018. Reazuddin is charged with four counts of wire fraud and seven counts of money laundering.

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Full text

KANSAS CITY, Mo. – A former Overland Park, Kansas, man has been indicted by a federal grand jury for receiving more than $800,000 in fraudulent business loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Mirza Michael Reazuddin, 65, who currently resides in Lawrenceville, Georgia, was charged in an 11-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on April 4, 2023. That indictment was unsealed and made public upon Reazuddin’s arrest and initial court appearance Tuesday, April 25, in Atlanta, Georgia.
The federal indictment alleges that Reazuddin received two loans under the Paycheck Protection Program totaling $804,100. As a part of the CARES Act, the Paycheck Protection Program was created to provided forgivable loans to small businesses. The purpose of the loans was to provide support to small businesses and assist their payroll to their employees during the coronavirus pandemic.
According to the indictment, Reazuddin claimed to be the owner of Grandview Hotel, LLC, a Missouri corporation. Reazuddin submitted a loan application to First Home Bank in St. Petersburg, Florida, on June 25, 2020. He allegedly claimed Grandview Hotel was an operating business with an average monthly payroll of $148,680, and submitted false documents in support of his loan application. Reazuddin submitted a second loan application to First Home Bank on Jan. 26, 2021. He allegedly claimed Grandview Hotel had a monthly payroll of $120,000, and submitted false documents in support of his loan application.
In fact, the indictment says, Grandview Hotel ceased doing business in March 2018.
On July 14, 2020, First Home Bank transferred $384,100 to Reazuddin’s bank account in the name of Grandview Hotel. On Feb. 22, 2021, First Home Bank transferred $420,000 to Reazuddin’s bank account in the name of Grandview Hotel. Reazuddin allegedly transferred most of those funds into his other bank accounts.
Reazuddin is charged with four counts of wire fraud and seven counts of money laundering.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.

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