The stolen money was used for rent, hotels, dog boarding, legal fees, ride sharing, electronics, and a Tesla Model 3. At least $288,000 was converted to cryptocurrency and other funds were transferred to 13 bank and brokerage accounts. Some funds were used in more than 2,000 transactions using 43 different types of cryptocurrencies.
DC Department of Justice officials say 30-year-old Elias Eldabbagh pleaded guilty to wire fraud charges after running a scheme with the potential to obtain $31 million of CARES Act funding. He successfully stole $2,385,000.
Eldabbagh is said to have stolen the money for a luxury car using a paycheck protection program and economic injury disaster loan scheme.
โOver the two years since the CARES Act was passed, IRS-CI special agents have rooted out and continue to go after these self-serving criminals who thought they could get away with robbing those who really needed help,โ said special agent by the IRS-CI. Waldon said.
According to a statementthe man used a company, Alias โโSystems, LLC, to apply for 25 PPP loans totaling more than $30 million from July 2020 through May 2021. He also submitted at least four EIDL applications totaling $950,000.
Authorities say he disguised himself using a stolen identity to file most of the applications. She also used identities, tax returns and financial documents from a DC consulting firm and doctored those documents to match her company name.
The stolen money was used for rent, hotels, dog boarding, legal fees, ride sharing, electronics, and a Tesla Model 3. At least $288,000 was converted to cryptocurrency and other funds were transferred to 13 bank and brokerage accounts. Some funds were used in more than 2,000 transactions using 43 different types of cryptocurrencies.
In May 2021, officials say Eldabbagh attempted to transfer funds seized by IRS-CI to other accounts. Since then, he has agreed to forfeit the Tesla Model 3, the contents of 21 bank accounts, and to liquidate his interest in cryptocurrencies.
Eldabbagh's sentencing is scheduled for August 25.
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