December 16, 2022
Fraud Friday – Father & Son Receive a Combined 11-Year Prison Sentence for $1.7 Million PPP Fraud
A father and son were sentenced for submitting fraudulent PPP applications seeking and obtaining over $1.7 million. Izzat Freitekh, the father, was sentenced to four years in prison while his son, Tarik/Tareq Freitekh was sentenced to more than seven years in prison.
The family fraudsters applied to the Paycheck Protection Program for four businesses owned by the father: La Shish Kabob, La Shish Kabob Catering, Green Apple Catering, and Aroma Packaging. In the applications, they misrepresented the number of employees and the business’ payroll expenses the businesses had. Once they obtained the funds, the pair engaged in unlawful monetary transactions including making $30,000 in payments to family members.
When the Freitekhs were convicted, the father was found guilty of one count of conspiracy to commit money laundering, three counts of money laundering, and one count of making false statements. On the other hand, the son was convicted of one count of conspiracy to commit wire fraud, one count of bank fraud, one count of conspiracy to commit money laundering, one count of money laundering, and a count of falsifying and concealing material facts. In addition, both must serve three years of court supervision once they are released from prison.
The government seized and secured approximately $1.3 million in fraudulent PPP funds from the Freitekhs, and the money has since been returned to a victim lender.