A Long Island resident has been sentenced to 10 years in prison for an extensive COVID-19 loan fraud scheme that prosecutors say targeted banks and the Small Business Administration (SBA) for small business loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL).
Rami Saab, also known as "Rami Hasan," orchestrated a scheme using shell companies to steal over $9.6 million from federal disaster relief funds. Saab pleaded guilty in July 2023 to conspiracy to commit wire fraud related to his operation of the yearlong scam. As part of his sentence, Saab must also pay restitution of approximately $9.6 million. A second defendant indicted in the case remains at large.
“Rami Saab showed a blatant disregard for all legal — and moral — responsibility in the midst of an unprecedented crisis. COVID-19 relief fraud is far from a victimless crime,” said Erin Keegan, HSI New York acting Special Agent in Charge. “The defendant not only stole from hardworking taxpayers, but took advantage of a federal program meant to truly help those experiencing tremendous financial difficulties due to the pandemic.”
The case underscores the commitment to prosecute individuals who abuse public resources during crises. According to a June 2023 report from the SBA, there were over $200 billion in potentially fraudulent COVID-19 EIDLs, EIDL Targeted Advances, Supplemental Targeted Advances, and PPP loans. This means at least 17% of all COVID-19 EIDL and PPP funds were disbursed to potentially fraudulent actors.
Saab's fraudulent activities involved submitting false information and fabricated documents to obtain more than $32 million in PPP and EIDL loans for shell corporations. These loans, intended to support distressed businesses, were instead misappropriated, with over $9.6 million funneled to Saab and his accomplices. The scheme included money laundering tactics and transfers to associates overseas.
The investigation and prosecution of this case reflect the collaborative efforts of law enforcement agencies and the U.S. Attorney's Office, with Assistant United States Attorneys leading the legal proceedings.