Federal Indictment in Chicago: Six Charged with CARES Act Fraud

In a significant development this week, a federal grand jury in Chicago has indicted two men from Tinley Park, along with four others, on serious charges related to fraudulent activities under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This indictment highlights the ongoing scrutiny of financial misconduct during the pandemic, particularly concerning relief programs designed to support struggling businesses and individuals.

The Defendants and Charges

The individuals charged include Athanasios Intzes, George Kavroulakis, Adam Jaber, Hassan Kurdi, and Abdallah Issa. Each defendant faces multiple counts of wire fraud, a federal offense that carries severe penalties. Specifically, Kavroulakis, 33, is charged with nine counts; Issa, 26, with four counts; Intzes, 35, with five counts; Jaber, 34, with nine counts; and Kurdi, 35, with four counts. Each count could result in up to 20 years in federal prison if convicted.

Despite the gravity of the charges, all defendants have pleaded not guilty. A status hearing is set for August 14 before U.S. District Judge Lindsay C. Jenkins, where further proceedings will determine the course of the case.

Allegations of Fraudulent Activities

The indictment outlines a scheme in which the defendants allegedly defrauded lenders and the U.S. Small Business Administration (SBA) out of millions of dollars through various relief programs, including the Paycheck Protection Program (PPP), the Economic Injury Disaster Loan (EIDL) program, and the Pandemic Unemployment Assistance (PUA) program. These programs were established to provide financial relief to businesses and individuals affected by the COVID-19 pandemic.

According to the indictment, the defendants submitted numerous fraudulent applications in 2020 and 2021. These applications were purportedly made on behalf of themselves, other individuals, and corporate entities they claimed to own. The documents contained materially false statements regarding the number of employees, revenue, payroll amounts, and other expenses related to their businesses.

Misrepresentation and Financial Gain

The indictment further alleges that Kavroulakis, Jaber, and Intzes were responsible for causing the disbursement of approximately $750,000 in fraudulent PUA benefits across Illinois and California. They allegedly submitted false statements regarding their unemployment status and that of others to secure these benefits.

The financial gains from these fraudulent activities were reportedly used for personal luxuries, including the purchase of multiple Mercedes-Benz vehicles and a Rolex Submariner watch. This extravagant spending underscores the serious nature of the alleged fraud and raises questions about the ethical responsibilities of those who exploit government assistance programs.

Reporting Fraudulent Activities

The Department of Justice is actively encouraging anyone with information about potential fraud related to COVID-19 relief programs to come forward. Individuals can report suspected fraud by calling the National Center for Disaster Fraud Hotline at 866-720-5721 or by filing an online complaint through the Department of Justice’s website.

Conclusion

The indictment of these six individuals serves as a stark reminder of the ongoing challenges in monitoring and preventing fraud within government relief programs. As the legal proceedings unfold, it will be crucial to observe how the justice system addresses these allegations and what measures may be implemented to prevent similar incidents in the future. The case not only highlights the importance of accountability but also the need for vigilance in safeguarding public funds during times of crisis.