WASHINGTON — A D.C. man will serve 10 years in prison for attempting to steal $31 million in COVID-19 relief funds.
Despite not succeeding in stealing the full amount, Elias Eldabbagh, 31, was still able to steal over $2.3 million through the Paycheck Protection Program (PPP) loans and the Economic Injury Disaster Loan (EIDL) programs, according to a press release.
What are PPP Loans and EIDL?
The PPP Loan comes as a result of the Coronavirus Aid, Relief and Economic Security (CARES) Act. This provided emergency financial assistance to people around the country who were experiencing economic hardships due to COVID-19. The EIDL program provides assistance to small businesses that experience economic hardships due to a "declared disaster," according to the release.
How was Eldabbagh able to do this?
According to the Department of Justice, Eldabbagh stole a person's identity to create Alias Systems, LLC and used that same stolen identity to apply for the PPP loans and EIDL programs, according to the release. Eldabbagh was able to use stolen tax returns, identities, and other stolen financial records from a consulting company located in D.C. to eventually succeed in stealing over $2.3 million.
Officials said Eldabbagh used his company, Alias Systems, LLC to apply to 25 PPP loans that totaled over $30 million and submitted four false EIDL applications that totaled $950,000.
Following his theft of millions of dollars, Eldabbagh then wired some of the funds to at least 13 separate bank and brokerage accounts, according to officials. Additionally, Eldabbagh purchased a Tesla Model 3 and converted at least $288,000 from fiat currency to multiple cryptocurrencies. He later made more than 2,000 transactions with 43 different cryptocurrencies, according to the release.
The stolen money was used to pay for hotels, dog boarding, rent, attorney fees, ride shares, electronics and other personal expenses, the release continues.
Eldabbagh pleaded guilty to wire fraud and laundering the proceeds of the wire fraud scheme back in April, according to the release. Officials add that Eldabbagh will also be under supervised release following his prison sentence and must pay over $2.4 million in restitution, confiscation of a Tesla, seized bank accounts and a money judgment of over $2.3 million.
Officials said in May 2021 investigators found that Eldabbagh made multiple attempts to transfer seized funds before he was stopped by federal agents. The press release continues to say that Eldabbagh agreed to give up his Tesla, the contents of 21 bank accounts, liquidate the interest in the cryptocurrency that he obtained with proceeds and give it up to the federal government as part of his plea deal.