By Staff Reporter | iSkyCreations – News & Media (ISC News & Media)
Published Feb 6th 2024
KANSAS CITY, Mo. – In a significant development in the fight against pandemic-related fraud, Mirza Michael Reazuddin, a 66-year-old former business owner from Overland Park, Kansas, now residing in Lawrenceville, Georgia, has pleaded guilty to federal charges of wire fraud and money laundering. The charges stem from his fraudulent acquisition of over $800,000 in funds from the Coronavirus Aid, Relief, and Economic Security (CARES) Act, aimed at supporting businesses affected by the COVID-19 pandemic.
Reazuddin’s admission came before U.S. Chief District Judge Beth Phillips, revealing the misuse of funds intended to alleviate economic distress caused by the global health crisis. As a partner in the now-defunct Grandview Hotel, LLC, Reazuddin exploited the CARES Act’s provisions for personal gain, despite the hotel ceasing operations in 2018 and officially closing in 2021.
The CARES Act, established to provide emergency assistance to struggling businesses during the pandemic, enabled the Small Business Administration (SBA) to issue Economic Injury Disaster Loans and forgivable Paycheck Protection Program (PPP) loans. These measures were designed to help small businesses keep workers employed and manage expenses during the economic downturn.