By: Richard L. Smith
A Maryland man, Mohamed Kamara, 43, from Greenbelt, Maryland, has been sentenced to 41 months in prison for his involvement in the illegal acquisition of more than $2 million in COVID-19 relief funds. U.S. Attorney Philip R. Sellinger made this announcement following the sentencing.
Kamara had previously pleaded guilty to two counts of wire fraud and conspiracy to commit wire fraud via videoconference before U.S. District Judge Esther Salas.
The sentencing was carried out in Newark federal court, where Judge Salas imposed the 41-month prison term.
U.S. Attorney Sellinger expressed the seriousness of Kamara's actions, "The defendant was sentenced today for submitting falsified applications to the government to obtain business loans to which he was not entitled. These relief programs were set up to provide financial help to Americans who were struggling to cope with the COVID-19 pandemic. Trying to turn them into a cash machine for personal benefit will only earn you what this defendant got today – a prison sentence."
The FBI - Newark Special Agent in Charge, James E. Dennehy, emphasized the consequences faced by individuals engaging in such fraudulent activities during times of crisis. Dennehy stated, "Criminals have shown over and over again they will find ways to steal money that isn't theirs in times of crisis, like a hurricane, war, and, in this case, COVID.
Kamara admitted he lied when applying for federal loans meant for struggling business owners who were forced to close their doors during the height of the pandemic. Fraudsters should stop assuming that they won't get caught with so much red tape and money being offered. We found Kamara, and I'll continue to find others who thought the same thing."
According to court documents and statements made in court, Kamara and his associates engaged in fraudulent activities from March 2020 to October 2020.
They submitted fraudulent applications to the Small Business Administration (SBA) for Economic Injury Disaster Loans (EIDL) using information belonging to other individuals and entities without their consent.
Additionally, they opened bank accounts using fraudulent documents. These actions led to the SBA granting fraudulent applications and transferring the loan proceeds to fraudulent bank accounts via wire communication.
Kamara further attempted to deposit checks from these fraudulent bank accounts into his personal bank account. As a result, the SBA provided more than $750,000 in EIDLs through these fraudulent applications.
Furthermore, from January 2020 to September 2020, Kamara submitted fraudulent applications to the state of New Jersey and six other states to obtain unemployment insurance benefits using the personal information of other individuals.
These fraudulent applications led to the state's disbursement of over $1 million, including funds to an account controlled by Kamara.
The sentencing of Mohamed Kamara serves as a reminder of the consequences individuals face when attempting to exploit relief programs meant to assist those affected by the COVID-19 pandemic.