David Ebrahimzadeh: Charged in Connection with a Scheme to Defraud Pandemic Relief Programs (New York Real Estate Developer and Investor)

Summary

A federal grand jury in Boston indicted David Ebrahimzadeh, a New York real estate developer and investor, on one count of bank fraud, two counts of wire fraud affecting a financial institution, one count of wire fraud and two counts of procuring a false tax return, in connection with a scheme to defraud pandemic relief programs in 2020 and 2021. According to the charging documents, Ebrahimzadeh operated Corniche Capital, LLC as a holding company, and such businesses were allegedly ineligible for PPP loans, Economic Injury Disaster Loans and Main Street Lending Program loans. It is alleged that his loan applications contained false revenue and payroll figures and that he allegedly obtained approximately $8.5 million in loans he was not entitled to.

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BOSTON – A New York real estate developer and investor has been charged in connection with a scheme to defraud pandemic relief programs in 2020 and 2021.
David Ebrahimzadeh, 45, of New York City, was indicted by a federal grand jury in Boston on one count of bank fraud, two counts of wire fraud affecting a financial institution, one count of wire fraud and two counts of procuring a false tax return. The defendant was arrested and will make his initial appearance in federal court in Massachusetts later today.
According to the charging documents, Ebrahimzadeh operated Corniche Capital, LLC as a holding company for various limited liability companies that he used to buy and sell commercial real estate and to lease out properties to commercial tenants. Under Small Business Administration rules, such businesses were allegedly ineligible for Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans, as well as for loans funded by the Federal Reserve Bank of Boston as part of the Main Street Lending Program.
Soon after the outbreak of the COVID-19 pandemic, Ebrahimzadeh allegedly applied for and received loans through each of these programs. It is alleged that Ebrahimzadeh’s loan applications were riddled with false and fraudulent information, including false revenue and payroll figures. Ebrahimzadeh also allegedly provided false financial information about his debts and liabilities to lenders and applied for pandemic relief loans for a number of companies that had been dissolved years before the pandemic. It is further alleged that Ebrahimzadeh illegally spent loan proceeds on luxury items, on personal and business debt and a personal home on Long Island.  It is further alleged that, having succeeded in buying a personal home, he and a family member obtained another pandemic relief loan to buy a second Long Island home.
In 2021, it is alleged that Ebrahimzadeh also fraudulently applied for forgiveness of a PPP loan by falsely claiming that he had paid employees in 2020. As part of that alleged fraud, Ebrahimzadeh filed tax returns that falsely claimed expense deductions in 2019 and about $600,000 in wage expenses in 2020.
In total, Ebrahimzadeh allegedly obtained approximately $8.5 million in loans he was not entitled to.
The charges of bank fraud and wire fraud affecting a financial institution each provide for a sentence of up to 30 years in prison, five years of supervised release and a fine of $1 million, or twice the gross gain or loss, whichever is greater. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of procuring a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley; Brian Tucker, Special Agent in Charge, Board of Governors of the Federal Reserve System, Office of Inspector General, Eastern Region; Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation Boston Division; and Thomas Demeo, Special Agent in Charge of Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Valuable assistance was provided by the Special Inspector General for Pandemic Recovery. Assistant U.S. Attorneys Kriss Basil and Elianna Nuzum of the Securities, Financial & Cyber Fraud Unit are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.

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