World News | US: Man Accused of Orchestrating $4.2M COVID Relief Fraud Scheme

Fort Lauderdale (US), Jan 4 (AP) A South Florida man tried to obtain more than $4.2 million in COVID-19 relief funds by filing false loan applications, federal prosecutors said.

Valesky Barosy, 27, made his first appearance last week in Fort Lauderdale federal court, according to court records. He's charged with five counts of wire fraud, three counts of money laundering and one count of aggravated identity theft. If convicted, Barosy faces up to 132 years in prison.

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According to an indictment, Barosy submitted fraudulent loan applications on behalf of himself and his accomplices, seeking more than $4.2 million in Paycheck Protection Programme loans. Barosy falsified the applicant's prior-year expenses, net profit and payroll, and submitted fraudulent IRS tax forms, prosecutors said.

Barosy and his accomplices received approximately $2.1 million in loans from the fraudulent scheme, investigators said. He used the money to purchase a Lamborghini Huracan EVO, Rolex and Hublot watches and designer clothing from Louis Vuitton, Gucci and Chanel, officials said.

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Attorneys for Barosy didn't immediately respond to messages seeking comment about the charges from The Associated Press.

The Paycheck Protection Program represents billions of dollars in forgivable small business loans for Americans struggling because of the COVID-19 pandemic. It's part of the coronavirus relief package that became federal law in 2020. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)