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Can I Take Your Order?

Can I Take Your Order?

Senior Director of Strategic Alliances
LexisNexis Risk Solutions - Government

“If at first you don’t succeed, try, try again” is an all-too-common quote used to inspire anyone confronted by failure. But for Salwan Adjaj, once a dentist from Oregon, maybe an addendum “but don’t try to succeed in crime” should have been added.

Beginning in September 2020 and continuing until at least May 2021, Adjaj submitted dozens of fraudulent loan applications to the Small Business Administration (SBA) to obtain Economic Impact Disaster Loan (EIDL) and Paycheck Protection Program (PPP) funds. Adjaj used the names and employer identification numbers (EIN) of fictitious business entities on his fraudulent applications, listing his personal residence as the business mailing address.  He fabricated information about the businesses for what he hoped appear to be legitimate businesses in need. But the SBA didn’t agree and rejected Adjaj’s initial EIDL applications.

But our fraudster perceived not trying again as the crime and not the fraudulent activity!  Adjaja began focusing primarily on the Restaurant Revitalization Fund (RRF), a pandemic economic relief program aimed at supporting restaurants, bars, and other food- and drink-related businesses. And here Adjaj had substantially greater success stealing PPP and RRF funds than he did EIDL. In May 2021, Adjaj submitted three RRF applications for restaurants allegedly located Sarasota, Miami, and Daytona Beach, Florida. Like his fraudulent EIDL and PPP applications, Adjaj’s RRF applications contained false business information, and all listed his personal residence as the business mailing address.

Altogether, Adjaj’s fraudulent applications caused the SBA to pay out more than $11.5 million in loans, grants, and associated lender fees. Someone eventually figured out our fraudster was just a dentist and not a taking orders from his restaurant menu. On September 13, 2022, Adjaja pleaded guilty to wire fraud and aggravated identity theft.

But wait!  Our dentist did not just limit his crimes to fake restaurant PPP loans. On July 13, 2022, in a separate criminal case, Adjaj admitted to using his position as a dentist to obtain controlled substances and pleaded guilty to illegal distribution. As part of his plea agreement, Adjaj has agreed to pay no less than $10.5 million in restitution to the SBA.

Great job by the Small Business Association in putting a stop to Adjaj’s fraudulent PPP applications.

Today’s Fraud of the Day is based on an article “Dentist used fake restaurant businesses to steal millions in COVID funds, feds say” published by The Sacramento Bee on September 14, 2022

A former Oregon dentist filed dozens of fraudulent loan and grant applications, in some instances using fictitious restaurant businesses, to steal nearly $11.5 million in COVID-19 relief funds, prosecutors said.

Salwan Adjaj, 43, pleaded guilty on Tuesday, Sept. 13, to “wire fraud and aggravated identity theft,” the United States Attorney’s Office District of Oregon said in a news release. Adjaj’s lawyer did not immediately respond to McClatchy News’ request for comment on Sept. 14.

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