Luquay Zahir, a former coordinator for the Atlantic City Housing Authority and Urban Redevelopment Agency, admitted to fraudulently obtaining COVID-19 relief funds. The announcement came from the U.S. Attorney’s Office for the District of New Jersey.
Zahir, 50, confessed to making false statements to the U.S. Small Business Administration (SBA) and committing wire fraud. These charges stem from his actions between 2020 and 2021, where he illegally obtained over $30,000 in pandemic relief funds.
Fraudulent Actions Uncovered
Zahir applied for a Paycheck Protection Program (PPP) loan and an Economic Injury Disaster Loan (EIDL) advance, claiming he owned a business with 10 employees. He provided fake documents, including a fabricated IRS Schedule C, to support his claims. However, investigations revealed that no such business existed.
Court filings showed Zahir used his personal residence as the business address in his EIDL application. He falsely stated the business had $100,000 in annual revenue. Law enforcement later confirmed that his residence showed no signs of business activity.
Misuse of Funds
Instead of using the relief funds for legitimate business purposes, Zahir spent the money on personal expenses, including ATM withdrawals. Additionally, he sought forgiveness for the PPP loan, falsely claiming the funds were spent on payroll.
Potential Penalties
The charges Zahir faces are serious. For making false statements, he could be sentenced to up to two years in prison and fined $250,000. The wire fraud charge carries an even harsher penalty—up to 20 years in prison and a $250,000 fine.
The case highlights the ongoing efforts to address fraudulent claims related to COVID-19 relief programs.
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