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Home Source documents U.S. Department of Labor OIG, Parker Man Indicted for Economic Injury and Disaster Loan and Payroll Protection Program Fraud Scheme (USAO D-CO 03/26/2024) (2024-03-28)

U.S. Department of Labor OIG, Parker Man Indicted for Economic Injury and Disaster Loan and Payroll Protection Program Fraud Scheme (USAO D-CO 03/26/2024) (2024-03-28)

Summary

A press release from the U.S. Attorney's Office, District of Colorado, dated March 26, 2024, announcing that Tarek Kassem, 63, of Parker, Colorado, was indicted by a federal grand jury for wire fraud and money laundering. According to the indictment, from March 2020 through at least March 2023 Kassem applied for and received more than $1.4 million in Economic Injury Disaster Loans and more than $300,000 in PPP funds under three business names. The applications allegedly contained false certifications that the funds would pay eligible business expenses, when the bulk of the proceeds went to Kassem's personal benefit. The indictment also states that Kassem applied for and obtained unemployment benefits in the State of Colorado during the pandemic. Kassem made an initial appearance on March 26, 2024, before Chief Magistrate Judge Michael E. Hegarty.

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Cite this document

“U.S. Department of Labor OIG, Parker Man Indicted for Economic Injury and Disaster Loan and Payroll Protection Program Fraud Scheme (USAO D-CO 03/26/2024) (2024-03-28).” Original at www.oig.dol.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-labor-oig-parker-man-indicted-for-economic-injury-an-6b076b068f/, SHA-256 4128159662eefd9033d5f04185574d42e28f2a295ca325d22390bb1e2125b785.

Full text

PRESS RELEASE



Parker Man Indicted for Economic
Injury and Disaster Loan and
Payroll Protection Program Fraud
Scheme
Tuesday, March 26, 2024

For Immediate Release
U.S. Attorney's Office, District of Colorado
USACO.PublicAffairs@usa.doj.gov

DENVER – The United States Attorney’s Office for the District of Colorado announces
Tarek Kassem, 63, of Parker, Colorado, was indicted by a federal grand jury for wire
fraud and money laundering.

According to the indictment, from March 2020 and through at least March 2023, the
defendant applied for and received more than $1.4 million dollars in Small Business
Association (SBA) Economic Injury Disaster Loans (EIDL) and more than $300,000 in
Payroll Protection Program (PPP) funds under three business names. These applications
contained a number of false and fraudulent certifications and representations, including
representations that funds would be used to pay eligible business expenses, when, in
fact, the bulk of the proceeds were used for the defendant’s personal benefit. The
defendant also applied for, and obtained, unemployment benefits in the State of
Colorado during the COVID-19 pandemic.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted in March
2020 and was designed to provide emergency financial assistance to Americans dealing
with the economic impact of the COVID-19 pandemic. The CARES Act created the PPP, a
program administered by the SBA that provided loans to small businesses to retain
workers, maintain payroll, and certain other expenses consistent with PPP
rules. Additionally, the CARES Act authorized the SBA to provide EIDLs to eligible small
businesses experiencing substantial financial disruptions due to the COVID-19
pandemic.
The defendant made his initial appearance on March 26, 2024, before Chief Magistrate
Judge Michael E. Hegarty. The charges contained in the indictment are allegations and
the defendant is presumed innocent unless and until proven guilty.

This case is being investigated by Internal Revenue Service – Criminal Investigation, the
Federal Bureau of Investigation, and the Department of Labor – Office of Inspector
General. The case is being prosecuted by Assistant United States Attorney Nicole
Cassidy.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement
Task Force to marshal the resources of the Department of Justice in partnership with
agencies across government to enhance efforts to combat and prevent pandemic-
related fraud. The Task Force bolsters efforts to investigate and prosecute the most
culpable domestic and international criminal actors and assists agencies tasked with
administering relief programs to prevent fraud by, among other methods, augmenting
and incorporating existing coordination mechanisms, identifying resources and
techniques to uncover fraudulent actors and their schemes, and sharing and harnessing
information and insights gained from prior enforcement efforts. For more information
on the Department’s response to the pandemic, please visit
https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can
report it by calling the Department of Justice’s National Center for Disaster Fraud
(NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form
at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Updated March 26, 2024

Topic
CORONAVIRUS
Component
USAO - Colorado


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2024-03-28-Parker-Man-Indicted-for-Economic-Injury-and-Disaster-Loan-and-Payroll-Protection-Program-Fraud-Sche.pdf
Size
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4128159662eefd9033d5f04185574d42e28f2a295ca325d22390bb1e2125b785
Our copy
2024-03-28-Parker-Man-Indicted-for-Economic-Injury-and-Disaster-Loan-and-Payroll-Protection-Program-Fraud-Sche.pdf
Original
www.oig.dol.gov
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