Carlisle Man From India Charged with Stealing $7M in Pandemic Funds

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Key Takeaways:

Durgaprasad Rao charged with fraudulently securing $7 million in pandemic relief through false corporate records and applications.
Rao’s scams involved fake payrolls, forgery of tax records, and substantial loan forgiveness across multiple states.
Facing wire fraud charges, Rao could receive up to 40 years in prison, fines, and supervised release.

Carlisle Man Charged with Stealing $7 Million in Pandemic Relief Funds

A Carlisle man, Durgaprasad Rao, aged 65, has been charged with stealing $7 million in pandemic relief funds through fraudulent means. This incident highlights the critical need for diligence in monitoring relief fund distribution to prevent abuse and ensure support reaches those genuinely in need.

Carlisle Man From India Charged with Stealing $7M in Pandemic Funds

What are the Allegations Against Durgaprasad Rao?

Rao allegedly created false corporate records to collect Paycheck Protection Program (PPP) loans. He used this scheme to apply for relief funds for several companies he controls, securing $7 million in Massachusetts alone. The details were brought to light during Rao’s appearance in the US District Court in Boston on Thursday.

How Did Rao Utilize the Pandemic Relief Funds?

Federal prosecutors claim that Rao did not just collect loans; he also managed to have substantial amounts forgiven. For instance, he had $1.7 million of his Massachusetts-based loans forgiven and the entire $5.5 million in Wisconsin forgiven. According to IRS Special Agent Miles Miller, a request for loan forgiveness is still pending in Georgia.

Can You Detail Rao’s Alleged Scams?

Rao’s fraudulent applications involved fake payroll and tax records. On behalf of Accelerated Engineering LLC, he claimed to have 77 employees and a payroll of $7.29 million in 2019. However, IRS records showed zero payroll payments and zero income for that year. Similar false assertions were made for Upstream Global Services Inc., where Rao claimed a yearly payroll of approximately $10,297,708.53 and 93 employees, which were entirely fabricated.

What Are the Legal Consequences for Rao?

Rao has been charged with two counts of wire fraud, which carry severe penalties. Each count could land Rao with up to 20 years in prison, three years of supervised release, and a $250,000 fine. Rao’s next court appearance is set for Friday, where conditions for his release will be further deliberated.

How Was Rao’s Financial Situation Misrepresented?

Despite owning a home in Carlisle assessed at $1.7 million, Rao was initially declared indigent in court papers. This declaration led to the assignment of an attorney pending further financial review. The exact address and purchase price of Rao’s New York condo, bought with some of the fraudulent funds, remain undisclosed.

What Impact Does This Case Have on Public Trust?

This case is a stark reminder of the vigilance required to protect pandemic relief programs from fraud. The COVID-19 Fraud Enforcement Task Force has been actively working to combat such scams, emphasizing the importance of transparency and accountability.

What Should Businesses Know About PPP Loans?

The Paycheck Protection Program (PPP) was established to help small businesses retain employees and cover overhead costs during the COVID-19 pandemic. It is essential for businesses to understand the compliance requirements and legal implications of dishonestly obtained funds. For detailed guidelines and legitimate application processes, refer to the official SBA website.

Conclusion: The Importance of Honesty in Financial Assistance Programs

The case of Durgaprasad Rao serves as a cautionary tale. Misuse of pandemic relief funds not only undermines the trust in such programs but also deprives truly needy businesses of much-needed support. It highlights the paramount importance of honesty and integrity when dealing with financial assistance programs to ensure they serve their intended purpose.

By adhering to stringent verification processes and making informed decisions, we can safeguard these essential funds and help legitimate businesses thrive even in challenging times.

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Glossary

Pandemic Relief Funds
- Financial aid provided by the government to support businesses and individuals affected by the COVID-19 pandemic. In this context, it refers to the funds distributed through programs like the Paycheck Protection Program (PPP).
Paycheck Protection Program (PPP)
- A federal loan program established to help small businesses keep their workforce employed during the COVID-19 crisis. The loans can be used for payroll and other essential expenses, and under certain conditions, they can be forgiven.
Wire Fraud
- A criminal offense involving the use of telecommunications or the internet to deceitfully obtain money or property. In Rao’s case, it refers to the false information submitted to acquire and forgive the PPP loans.
Loan Forgiveness
- The cancellation of a borrower’s obligation to repay a part or all of a loan. Within the PPP, loan forgiveness can be granted if the borrower meets specific criteria, such as using the funds for eligible expenses.
Corporate Records
- Official documents and filings related to the formation and operation of a company, including payroll data, tax filings, and employee information. Rao allegedly falsified these records to secure pandemic relief funds fraudulently.

This Article In A Nutshell:

Durgaprasad Rao of Carlisle faces charges for allegedly scamming $7 million in pandemic funds. Rao fabricated documents to acquire PPP loans for fake companies, with large amounts later forgiven. The case underscores the necessity to monitor relief fund distributions strictly to aid genuine recipients and avoid abuse.
— By VisaVerge.com

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