CHARLOTTE, NC (QUEEN CITY NEWS) – A man and his son were found guilty of multiple counts on Thursday after authorities accused them of obtaining more than $1.7 million in PPP loans through through fraudulent loan applications through a restaurant in Charlotte.
The Justice Department has accused Izzat Freitekh, his son Tarik Freitekh, of obtaining $1.7 million through fraudulent PPP loans by submitting false claims by three companies, including La Shish Kabob restaurant and La Shish Catering .
The men were each charged with one count of conspiracy to commit wire fraud and one count of bank fraud. Izzat Freitekh was also charged with one count of misrepresentation.
There was also a request that included fraudulent IRS tax documents submitted on behalf of Green Apple Catering LLC (Green Apple), indicating that the restaurant paid $4.8 million to employees in 2019, despite evidence that the company did not exist before March 2020, the DOJ said.
A claim containing false company salary information and fraudulent IRS tax documentation was also submitted on behalf of Aroma Packaging Systems.
The DOJ said the elder Freitekh also made false statements to law enforcement officials, claiming a company called “Kyber Capitol” was responsible for submitting PPP loan applications.
The DOJ said last December that it had recovered about $1.3 million of PPP funds disbursed in the case.