Crime & Safety
Ashburn Man Pleads Guilty In Paycheck Program Fraud Scheme
An Ashburn man pleaded guilty to defrauding the Paycheck Protection Program, an initiative to help businesses during the coronavirus.
ASHBURN, VA — An Ashburn man pleaded guilty Tuesday to defrauding the Paycheck Protection Program, a federal initiative designed to help businesses pay their employees and meet their basic expenses during the coronavirus crisis, according to the U.S. Justice Department.
According to court documents, Tarik Jaafar, 42, conspired with his wife, Monika Magdalena Jaworska, 43, to create four shell companies. These companies allegedly conducted no legitimate business and existed solely as a means to execute the scheme to defraud, according to the U.S. Attorney’s Office Eastern District of Virginia.
From April 13 to May 6, Jaafar and Jaworska allegedly applied for 18 separate PPP loans in the names of the four shell companies valued at about $6.6 million, falsely claiming that the businesses had employees and they needed the loans to pay their employees’ salaries, the Justice Department said.
Find out what's happening in Ashburnfor free with the latest updates from Patch.
Jaafar and Jaworska allegedly fraudulently induced banks to distribute about $1.4 million in loans, which they intended to use for their personal benefit, according to the U.S. attorney's office.
“The Paycheck Protection Program was developed to aide small businesses during these challenging times,” Hannibal “Mike” Ware, Inspector General of the Small Business Administration, said in a statement. “Our office will remain relentless in the pursuit of bad actors who seek to exploit SBA’s vital economic programs."
Find out what's happening in Ashburnfor free with the latest updates from Patch.
On June 20, Jaafar and Jaworska were arrested at John F. Kennedy International Airport as they attempted to flee to Poland, according to the U.S. attorney's office. The majority of the funds were recovered by the banks and by law enforcement.
Jaafar pleaded guilty to conspiracy to defraud the United States and faces a maximum penalty of five years in prison when sentenced on Nov. 13. He was remanded to the custody of the U.S. Marshals after pleading guilty on Tuesday.
Jaafar’s wife, Jaworska, is scheduled for a plea hearing on Sept. 3 and has been in custody since her arrest on June 20.
Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.
