Two Indian-origin men in US guilty of fraud in multi-million dollar Covid fund
Houston (PTI): Two men of Indian origin in the US have pleaded guilty to their participation in a multi-million dollar fraud scheme by obtaining loans under an economic assistance plan following the Covid-19 pandemic in the country, the justice department said.
The Department of Justice in a statement said Nishant Patel, 41, and Harjeet Singh, 49, both from Houston and three others engaged in fraudulently obtaining and laundering millions of dollars in forgivable Paycheck Protection Programme (PPP) loans that the Small Business Administration (SBA) guarantees under the CARES Act.
They admitted to submitting false and fraudulent PPP loan applications to SBA and certain SBA-approved PPP lenders.
All five defendants also assisted in laundering the fraudulently obtained PPP loan funds by supplying co-conspirators with blank, endorsed checks, which were made payable to people posing as employees of the companies that received the PPP loan, but who were in fact not employees.
These fake paychecks were then cashed at check-cashing stores that other members of the conspiracy controlled.
As part of the scheme, Patel obtained a false and fraudulent PPP loan of about USD 474,993 and Singh obtained two false and fraudulent PPP loans for a total of USD 937,379, the statement said.
The three others involved in the fraud obtained a total amount of more than USD 1.4 million, it added.
They are scheduled to be sentenced on January 4 next year and each face a total maximum penalty of five years in prison.
In addition to these five defendants, one other individual was convicted at trial for his involvement in the scheme, and 15 other individuals have pleaded guilty to their involvement in the loan fraud scheme.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 provided fast and direct economic assistance for American workers, families, small businesses, and industries affected by the Covid-19 pandemic.
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Minister Patil chairs industry meetings to chart growth for key sectors in Karnataka
Bengaluru (PTI): Karnataka Minister M B Patil on Tuesday chaired meetings with industry representatives from the aerospace and defence, machine tools, auto/EV, and green energy sectors to discuss sector growth and government support measures.
The meetings were attended by leading industrialists and their representatives, with some participating virtually.
Speaking on the occasion, the minister for Large and Medium Industries said Karnataka is at the forefront of the country’s aerospace and defence sectors.
He noted that Suzuki and Toyota plan to launch aerial taxi services in Japan by 2028, with Bengaluru-based Sasmos supplying electrical equipment for the project.
Industrialists suggested introducing similar “fly-taxi” services in Karnataka through an appropriate policy, which Patil said would be examined seriously.
The minister highlighted the need to establish testing centres and Common Facility Centres for the aerospace and defence industries and assured that these facilities would be provided.
Suggestions were also made to prepare a comprehensive roadmap for sector growth.
Karnataka has urged the Central Government to approve Defence Corridor projects in the Bengaluru North–Kolar–Chikkaballapur and Dharawada–Vijayapura–Belagavi regions.
Industrialists also suggested a corridor between Bengaluru and Mysuru, Patil said.
He said Karnataka aims to become a hub for defence electronics manufacturing, with plans to establish a 200-acre Defence Electronics Park and a 100-acre Avionics and Sensor Park.
These projects will be implemented once the Special Investment Region is operational, and land availability will not be an issue.
On the machine tools sector, Patil said the industry has recorded an annual turnover of Rs 36,500 crore and is witnessing steady growth.
Large-scale exhibitions have increased demand, and the state must strengthen its capabilities to develop control systems for heavy machinery. One testing unit is already operational in Bengaluru, with another planned for Tumakuru. Expansion of vocational training institutes in industrial areas is also underway.
In the Auto and EV sector, Vision Group members highlighted the need for a network of dry ports and more EV charging stations across the state.
Patil noted that the Tata Group is manufacturing EV buses in Dharawada for nationwide supply. Plans for mini excavator production and export facilitation were also discussed, along with the establishment of a testing facility for two-wheeler EVs.
For the Green Energy sector, the group emphasised the need for a suitable policy on battery-based energy storage and the establishment of data centres.
Patil assured that the government will seriously consider all suggestions and respond positively.
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