SHERMAN, Texas (CBSDFW.COM) – A Murphy man has been sentenced to federal prison for perpetrating a scheme to fraudulently obtain more than $3.3 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Fahad Shah, 45, pleaded guilty on May 19, to wire fraud and was sentenced to 31 months in federal prison On Thursday, Sept. 16, by U.S. District Judge Amos L. Mazzant, III.
“Stealing limited COVID relief funds is the very definition of stealing from the less fortunate,” said Acting U.S. Attorney Nicholas J. Ganjei. “Every dollar that was stolen and extravagantly spent in this case was one less dollar that went to a struggling business scrambling to meet its payroll obligations to employees. The Department of Justice and its partners will do everything in their power to investigate and prosecute those that would deign to steal these limited funds and stall national recovery efforts.”
According to court documents, Shah sought approximately $3.3 million in PPP funds by claiming his family’s business, WBF Weddings by Farah Inc., employed more than 100 people and paid millions of dollars in compensation to those employees.
In actuality, WBF had no employees aside from Shah and his wife.
Based on Shah’s false representations and forged documents, an SBA-approved lender provided over $1.5 million in PPP loan funds to Shah.
Shah used the funds for personal gain contrary to program’s terms.
He paid off his home mortgage and purchased two Teslas and a Mercedes, among other items.