A federal judge in Phoenix has sentenced Mohammed Maio to 10 years in prison for fraudulently collecting nearly $2.2 million in Paycheck Protection Program and Economic Injury Disaster Loan money for businesses that had no employees. IRS Criminal Investigation said U.S. District Judge Michael T. Liburdi imposed the sentence on October 13. Prosecutors say Maio spent the money on personal gain, including buying multiple properties.
Loans for businesses with no one on the payroll
Between May 2020 and March 2024, the IRS says, Maio conspired to obtain and misuse multiple PPP and EIDL relief loans. He submitted false information to secure nearly $2.2 million for several businesses that had no employees. Those two programs were pandemic relief for small businesses, and U.S. Attorney Timothy Courchaine said Maio exploited a program intended to provide relief during a national crisis.
The money did not go where it was supposed to. The IRS release says the funds were used for personal enrichment, including buying multiple properties, instead of legitimate business purposes. Courchaine said fraud like this weakens federal assistance programs and burdens taxpayers…