DENVER — A Parker man faces a federal indictment for fraudulently obtaining funds through COVID-19 assistance programs over three years, the U.S. Attorney's Office for Colorado said on Wednesday.
Tarek Kassem, 63, is accused of applying for and receiving more than $1.4 million in Economic Injury Disaster Loans (EIDL) and more than $300,000 in Payroll Protection Program (PPP) funds between March 2020 and March 2023 using three business names, according to the indictment.
The applications contained a number of false and fraudulent certifications and representations. Kassem stated in his applications that the funds would be used to pay eligible business expenses, but the bulk of the money was used for Kassem's personal benefit, according to the indictment.
Kassem also applied for, and received, unemployment benefits from the State of Colorado during the COVID-19 pandemic, the U.S. Attorney's Office said.
The case is being investigated by the IRS - Criminal Investigation, FBI and the Department of Labor - Office of Inspector General.
Kassem made his first court appearance Tuesday, the U.S. Attorney's Office said.
The Coronavirus Aid, Relief and Economic Security (CARES) Act was enacted in March 2020 to provide emergency assistance to Americans dealing with the economic impact of the COVID-19 pandemic. CARES created the PPP to provide loans to small businesses to retain workers and maintain payroll. The PPP was overseen by the Small Business Administration, which provided loans to eligible small businesses. Additionally, the CARES Act authorized the Small Business Association to provide EIDLs to eligible small businesses experiencing substantial financial disruptions due to the COVID-19 pandemic.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form.
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