By: Richard L. Smith
A Bergen County man will spend two years in federal prison after admitting to orchestrating a scheme that fraudulently obtained more than $670,000 in COVID-19 relief funds intended to assist struggling businesses.
U.S. Attorney Robert Frazer announced that Malak Faltawws, 49, of Rutherford, was sentenced Wednesday to 24 months in prison after previously pleading guilty to wire fraud and money laundering charges.
U.S. District Judge Evelyn Padin imposed the sentence in Newark Federal Court.
According to federal court documents and statements made during the proceedings, Faltawws carried out the scheme between March 2020 and November 2021, obtaining approximately $670,292 through federal COVID-19 emergency relief programs.
Prosecutors said the money included loans and cash advances available through the Economic Injury Disaster Loan and Paycheck Protection Program, which were created to provide financial assistance to businesses struggling during the pandemic.
Federal authorities said Faltawws submitted fraudulent applications that exaggerated his businesses’ revenue, payroll expenses and number of employees to qualify for the funds.
After receiving the money, prosecutors said Faltawws diverted the proceeds for his personal benefit rather than using them for their intended business purposes.
In addition to the 24-month prison sentence, Judge Padin ordered Faltawws to serve three years of supervised release and pay $670,292 in restitution. 
He was also ordered to pay a $10,000 fine.
The investigation was conducted by special agents with IRS Criminal Investigation’s Newark Field Office under the direction of Jenifer L. Piovesan.