Dearborn Heights Man Pleads Guilty In COVID-19 Loan Scheme: Officials

DEARBORN HEIGHTS, MI — A Dearborn Heights is facing up to 40 years in prison after pleading guilty to fraudulently obtaining more than $1 million in loans intended to help small businesses stay afloat during the Covid-19 pandemic, according to federal officials.

Wahid Makki, 61, pleaded guilty to wire fraud and international money laundering, both of which are punishable by up to 20 years in federal prison. He will be sentenced Feb. 6, 2024.

Officials said Makki misrepresented and used false statements to obtain loans authorized by the CARES Act, which was designed to help small businesses that were experiencing financial disruption due to the COVID-19 pandemic.

Between April 2020 and April 2021, Makki sought 17 loans in the names of various business entities he purported to own and control, officials said.

Makki’s business entities were "shells" that existed on paper only, meaning they had no revenue, employees or ongoing operations of any sort, but the applications said that each of these entities had between three and 15 employees, officials said.

Makki also forged the monthly payroll amounts and misrepresented how the money would be spent, officials said.

Overall, Makki received roughly $1,082,600 in proceeds from the 10 loans from the Small Business Administration’s "Economic Injury Disaster Loan Program," a program that provided low-interest financing to businesses affected by the pandemic.

Makki admitted he wired a portion of the loans to a "sea view condo" in Beirut, Lebanon, officials said.

"This defendant stole money intended to keep our economy functioning and our workers employed during a national crisis, and then spent his ill-gotten gains on a luxury property overseas," U.S. Attorney Dawn Ison said. "Today’s guilty plea is an important step in holding Mr. Makki accountable for his crimes."