Clyde Hill resident pleads guilty to PPP loan fraud.

The man is said to have lied to acquire about $5.5 million in payroll loans.

Dept. of Justice logo

Dept. of Justice logo

A Washington tech executive pleaded guilty today to wire fraud and money laundering this week in connection with his scheme to obtain over $5.5 million in Paycheck Protection Program (PPP) loans and laundering the proceeds, according to a Dept. of Justice press release.

Mukund Mohan, 48, of Clyde Hill, Washington, was charged in July 2020. He is scheduled for sentencing in front of U.S. District Judge John C. Coughenour on July 20, 2021.

According to the plea agreement and other records filed in the case, Mohan submitted at least eight fraudulent Paycheck Protection Program loan applications on behalf of six different companies to federally insured financial institutions. In support of the fraudulent loan applications, Mohan made numerous false and misleading statements about the companies’ respective business operations and payroll expenses.

In support of the fraudulent loan applications, Mohan submitted fake and altered documents, including fake federal tax filings and altered incorporation documents, according to the press release.

For example, Mohan misrepresented to a lender that, in 2019, his company Mahenjo Inc., had dozens of employees and paid millions of dollars in employee wages and payroll taxes. In support of Mahenjo’s loan application, Mohan submitted incorporation documents showing that he incorporated the company in 2018 and filed federal unemployment tax forms for 2019.

In truth, Mohan purchased Mahenjo on the Internet in May 2020 and, at the time he purchased the company, it had no employees and no business activity. The incorporation documents he submitted to the lender were altered and the federal tax filings he submitted were fake, according to the release.

Federal law enforcement is said to have seized all of but about $16,000 of federal loan funds from Mohan’s accounts.

Under the terms of the plea agreement, prosecutors will recommend the low end of the federal sentencing guidelines range. Both prosecution and defense will recommend that Mohan pay a $100,000 fine in addition to his restitution obligation.

Wire fraud is punishable by up to 20 years in prison. Money laundering is punishable by up to 10 years in prison.




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