Tech executive charged with COVID-19 business loan fraud and money laundering

The Clyde Hill resident allegedly applied for Paycheck Protection Program loans for six businesses that had no employees or operation costs

  • Friday, July 24, 2020 5:02pm
  • News

An Eastside tech executive has been taken into custody for allegedly seeking over $5.5 million in Paycheck Protection Program (PPP) loans and laundering the proceeds.

According to a release from the U.S. Department of Justice Attorney’s Office for the Western District of Washington, the 48-year-old Clyde Hill man Mukund Mohan was charged with a criminal complaint of one count money laundering and one count wire fraud.

The criminal complaint alleges that Mohan fraudulently sought these Coronavirus business relief loans for six different companies, providing altered documents and tax findings and making various misleading statements about staffing and ownership of the businesses. From April to June, Mohan submitted eight loan applications to five different financial institutions.

Four of these companies were not registered with the Department of Revenue nor had a business license. One company, Zuput, was registered for a business license around the same time Mohan uses it to apply for a PPP loan. There is no record of these companies paying any employee wages. The sixth company, Mahenjo, was purchased by Mohan recently and had not been in operation or had employees from December 2018 to May 2020, although Mohan’s application indicated it paid $2,376,500 to employees in 2019.

The complaint further alleges that Mohan transferred at least $231,000 in fraudulently-obtained loan proceeds to his personal brokerage account for his personal benefit.

The CARES Act is a federal law enacted on March 29, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%.




In consideration of how we voice our opinions in the modern world, we’ve closed comments on our websites. We value the opinions of our readers and we encourage you to keep the conversation going.

Please feel free to share your story tips by emailing editor@bellevuereporter.com.

To share your opinion for publication, submit a letter through our website https://www.bellevuereporter.com/submit-letter/. Include your name, address and daytime phone number. (We’ll only publish your name and hometown.) We reserve the right to edit letters, but if you keep yours to 300 words or less, we won’t ask you to shorten it.

More in News

King County 2020 unemployment numbers. Source: Washington State Employment Security Department
Boeing, coronavirus likely to impact King County economy

Unemployment remained high in September.

Screenshot from the Bellevue 2021-2022 Preliminary Budget.
Bellevue presents the 2021-22 proposed budget

With a $1.7 billion budget, the city will need to face decisions in the next year on how to handle the economic uncertainty from COVID-19

t
Smith, Basler running for District 9 Congress seat

Republican challenger takes on Democrat incumbent.

File photo
Bellevue council votes to increase sales tax to support affordable housing

The vote from Bellevue and other cities takes revenue away from a county-wide sales tax meant to address chronic homelessness

File photo
State Supreme Court strikes down $30 car-tab initiative

Justices unanimously agreed that voter-approved Initiative 976 is unconstitutional.

Hilary Franz (left) and Sue Kuehl Pederson
Wildfires, forest health are key issues in race to lead DNR

Republican Sue Kuehl Pederson is challenging incumbent Commissioner of Public Lands Hilary Franz.

power grid electricity power lines blackouts PG&E (Shutterstock)
State extends moratorium on some electric, gas shutoffs

Investor-owned electric and natural gas utilities in WA can’t disconnect customers through April.

Sightseers at a Snoqualmie Falls viewpoint adjacent to the Salish Lodge & Spa on Feb. 19, 2020. Natalie DeFord/staff photo
25 COVID cases linked to Salish Lodge

Public Health is urging anyone who visited the lodge to monitor for symptoms or get tested.

The nose of the 500th 787 Dreamliner at the assembly plant in Everett on Sept. 21, 2016. (Kevin Clark / Herald, file)
Report: Boeing will end 787 Dreamliner production in Everett

Boeing declined comment on a Wall Street Journal story saying the passenger jet’s assembly will move to South Carolina.

Most Read