(Image from Justice.gov)
A Washington tech executive charged in a scheme to obtain more than $ 5.5 million in Paycheck Protection Program (PPP) loans and launder proceeds pleaded guilty Monday.
Acting US Attorney Tessa M. Gorman for the Western District of Washington announced in a Justice Department news release that Mukund Mohan, 48, of Clyde Hill, Wash., Submitted at least eight fraudulent PPP loan applications on behalf of from six different companies to Insured Financial Institutions.
In support of the fraudulent loan applications, Mohan made numerous false and misleading statements about the companies’ respective business operations and payroll expenses, according to the DOJ.
Mohan submitted false and altered documents, including false federal tax returns and altered incorporation documents, and misrepresented to a lender, for example, that in 2019 his company, Mahenjo Inc., had dozens of employees and paid millions of dollars in employee wages. and payroll taxes. . In reality, Mohan bought Mahenjo on the internet in May 2020, and at the time he bought the company, he had no employees or no business.
Mohan’s prior technology experience includes a stint at Amazon Business, where he was Director of Product Management. He was also previously a director of Microsoft Ventures and director of engineering for Microsoft’s cloud and enterprise business.
Mohan was indicted in July 2020 and his sentence is scheduled for July 20. Under the terms of the plea agreement, prosecutors will recommend the lower end of the range of federal sentencing guidelines, according to the DOJ. Both the prosecution and defense will recommend that Mohan pay a fine of $ 100,000 in addition to his restitution obligation.
Wire fraud is punishable by up to 20 years in prison. Money laundering is punishable by up to 10 years in prison.
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