A Collin County wedding planner who abused a PPP loan to buy expensive cars and pay off his mortgage has been sentenced to prison.
Fahad Shah, 45, of Murphy, was sentenced to 31 months in prison on September 16 after pleading guilty of fraud in May, according to a Justice Department release.
Shah alleged through forged documents that his family business Weddings by Farah Inc. had more than 100 employees and applied for approximately $ 3.3 million in funding from the Paycheck Protection Program (PPP) loans granted by the Small Business Administration (SBA ) were guaranteed as part of the coronavirus aid. Relief, and Economic Security (CARES) Act, which he claimed would pay these employees.
An SBA approved lender provided Shah with over $ 1.5 million in PPP loan funds. Contrary to the program terms, Shah used the money to pay off his home mortgage, including buying two Teslas and a Mercedes.
The DOJ found that the company only had two employees: Shah and his wife.
A Justice Department spokesman said there had been several cases of fraud similar to this one.
“Every time aid like this becomes available, someone will find a way to commit a system,” the spokesman said.
In a statement, Acting US Attorney Nicholas J. Ganjei said they will continue to pursue such cases.
“Stealing limited COVID aid funds is the definition of stealing from the less fortunate,” Ganjei said. “Every dollar stolen and extravagantly spent in this case was one less dollar that went to a struggling company to meet its payroll obligations to its employees. The Justice Department and its partners will do everything in their power to investigate and prosecute those who … would condescend to steal these limited funds and halt national reconstruction efforts. “
