{"id":53351,"date":"2023-06-13T18:54:04","date_gmt":"2023-06-14T01:54:04","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=53351"},"modified":"2023-06-13T18:54:04","modified_gmt":"2023-06-14T01:54:04","slug":"calif-man-arrested-for-allegedly-getting-more-three-million-in-covid-business-loans-for-shell-companies","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=53351","title":{"rendered":"Calif. Man Arrested for Allegedly Getting More Three Million in COVID Business Loans for Shell Companies"},"content":{"rendered":"<p class=\"yiv4578449583MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>LOS ANGELES\u00a0<\/strong><\/span><\/p>\n<p class=\"yiv4578449583MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-41105 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2020\/07\/cropped-judge-gavel-2-300x300.jpg\" alt=\"\" width=\"300\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2020\/07\/cropped-judge-gavel-2-300x300.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2020\/07\/cropped-judge-gavel-2-150x150.jpg 150w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2020\/07\/cropped-judge-gavel-2.jpg 684w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Officials announced Tuesday that a Westside man had been arrested on a federal grand jury indictment alleging he fraudulently obtained nearly $3.2 million in COVID-19 loans for his businesses that were shell companies.<\/span><\/p>\n<p class=\"yiv4578449583MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Mark Farag Shehata, 70, a.k.a. \u201cSamy Farag,\u201d \u201cMark Farag,\u201d and \u201cMark Fshehata,\u201d of Marina del Rey, was arrested Monday morning by federal agents.<\/span><\/p>\n<p class=\"yiv4578449583MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Shehata pleaded not guilty to seven counts of wire fraud. A July 24 trial date was scheduled, and a $500,000 bond was set in this case.<\/span><\/p>\n<p class=\"yiv4578449583MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 According to a federal grand jury indictment returned on June 8 and unsealed Monday, Shehata organized and registered four limited liability companies that purportedly operated in Marina del Rey: Shirmak Group LLC; Cynergy Group Internatioal (<i>sic<\/i>) LLC; Global Network Investments LLC; and Alpha and Omega Group LLC.<\/span><\/p>\n<p class=\"yiv4578449583MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 From May 2020 to May 2021, Shehata allegedly submitted at least seven false and fraudulent loan applications under the Paycheck Protection Program (PPP), a financial aid plan Congress enacted to support businesses harmed by the COVID-19 pandemic\u2019s economic impact. <\/span><\/p>\n<p class=\"yiv4578449583MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\"><a href=\"https:\/\/cjnotebook.com\/?attachment_id=53352\" rel=\"attachment wp-att-53352\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-53352 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/06\/eaggqoiddmg-300x169.jpg\" alt=\"Visualization of the Coronavirus\" width=\"300\" height=\"169\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/06\/eaggqoiddmg-300x169.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/06\/eaggqoiddmg-1024x576.jpg 1024w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/06\/eaggqoiddmg-768x432.jpg 768w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/06\/eaggqoiddmg-1536x864.jpg 1536w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/06\/eaggqoiddmg.jpg 1600w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>Recipients used the PPP loans to pay only certain authorized business expenses, such as payroll, mortgage interest, lease, and utilities.<\/span><\/p>\n<p class=\"yiv4578449583MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 The indictment alleges that Shehata\u2019s four businesses were nothing more than shell companies. <\/span><\/p>\n<p class=\"yiv4578449583MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">None of the PPP loan proceeds Shehata allegedly fraudulently obtained was used to make payments to employees for payroll or any business expenses.<\/span><\/p>\n<p class=\"yiv4578449583MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In furtherance of the scheme, Shehata submitted to the Small Business Administration and several lenders false applications requesting $5.4 million in PPP loans, fraudulently obtaining approximately $3,154,265 in PPP proceeds, the indictment alleges. <\/span><\/p>\n<p class=\"yiv4578449583MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">Shehata would face a statutory maximum sentence of 20 years in federal prison for each count if convicted. Shehata is presumed innocent unless proven guilty.<\/span><\/p>\n<p class=\"yiv4578449583MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">The U.S. Department of Justice Office of Inspector General investigated this matter.<b><\/b><\/span><\/p>\n<p class=\"yiv4578449583MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">Assistant U.S. Attorney Valerie L. Makarewicz of the Major Frauds Section is prosecuting this case.<\/span><\/p>\n<p class=\"yiv4578449583MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: arial, helvetica, sans-serif;\">Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department\u2019s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at:\u00a0<a href=\"https:\/\/www.justice.gov\/disaster-fraud\/ncdf-disaster-complaint-form\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">https:\/\/www.justice.gov\/disaster-fraud\/ncdf-disaster-complaint-form<\/a>.<\/span><\/p>\n<p class=\"yiv4578449583MsoNormal\" style=\"text-align: center;\">\n","protected":false},"excerpt":{"rendered":"<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0 Officials announced Tuesday that a Westside man had been arrested on a federal grand jury indictment alleging he fraudulently obtained nearly $3.2 million in COVID-19 loans for his businesses that&#8230;<\/p>\n","protected":false},"author":1,"featured_media":53353,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3255],"tags":[],"class_list":["post-53351","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-federal-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Calif. Man Arrested for Allegedly Getting More Three Million in COVID Business Loans for Shell Companies<\/title>\n<meta name=\"description\" content=\"\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0 Officials announced Tuesday that a Westside man had been arrested on a federal grand jury indictment alleging he fraudulently\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cjnotebook.com\/?p=53351\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Calif. 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