Sugar Land man sentenced in PPP scheme
HOUSTON - A Sugar Land man will spend the next 48 months behind bars in connection with a Paycheck Protection Program, or PPP, scheme, officials said.
According to U.S. Attorney Alamdar S. Hamdani, Zain Khan pleaded guilty back on April 10.
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A release stated that at the hearing, the court heard additional testimony that described how Khan almost immediately lost the money he stole in various stock trading maneuvers.
Khan was further ordered to pay $1 million in restitution to the Small BUsiness Administration.
In handing down the sentence, Judge Lee Rosenthal noted the severity of Khan’s criminal activity at a time when the country was suffering from the effects of the COVID-19 pandemic.
Officials stated that in or around April 2021, Khan created a fictitious temporary workforce business and payroll documents to qualify for program funds.
Khan then converted the program funds for personal use to be invested in stock trading.
The federal government created the PPP under the CARES Act to protect jobs during the 2020 pandemic. The PPP allowed entities to apply for low-interest private loans to pay for payroll and certain other related costs.
Officials said that Khan was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.