A federal judge sentenced Feroz Jalal, 51, from Niles, to more than five years in federal prison for fraudulently obtaining over $1.5 million in small business loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, according to the U.S. Attorney’s Office for the Northern District of Illinois.
Jalal participated in a scheme to defraud banks and the U.S. Small Business Administration (SBA) during 2021, using the Paycheck Protection Program (PPP). Over a span of five months, Jalal submitted at least 12 fraudulent loan applications on behalf of businesses he falsely claimed to own. These applications included falsified data on employee numbers, revenues, operating costs, and business activities.
Jalal also submitted fake IRS tax filings and fabricated spreadsheets to back up his claims of payroll expenses, according to authorities. The scheme led to $1.792 million in fraudulent loan requests, with $1.644 million ultimately being disbursed by lenders.
In addition to his prison sentence, U.S. District Judge John F. Kness ordered Jalal to pay more than $1.5 million in restitution to the SBA. Jalal pleaded guilty to bank fraud and money laundering charges last year.
The Department of Justice continues to investigate and prosecute COVID-related fraud. Individuals with information about fraudulent attempts to obtain relief funds can report them to the National Center for Disaster Fraud at (866) 720-5721.
