A federal grand jury has indicted Akash Kumar Singh, 48, of Sacramento on charges related to bank fraud and money laundering. Acting U.S. Attorney Michele Beckwith announced that Singh faces four counts of bank fraud and three counts of money laundering following his arrest.
Court documents reveal that Singh allegedly obtained over $3 million in Paycheck Protection Program (PPP) loans intended for small businesses during the COVID-19 pandemic. He reportedly secured at least two PPP loans for a software development company named Kryptoblocks, which he claimed to lead. Singh is accused of falsely asserting that Kryptoblocks generated substantial revenue and paid significant wages in 2019 and 2020, while the company reportedly had little to no revenue and no employees in the United States during this period.
The case is being investigated by the Federal Bureau of Investigation and the IRS Criminal Investigation. Assistant U.S. Attorney Sam Stefanki is handling the prosecution.
If convicted, Singh could face up to 30 years in prison and a fine of $1 million or twice the amount involved in each money laundering count. The court will determine any sentence based on statutory factors and Federal Sentencing Guidelines. It is important to note that these charges are allegations, and Singh is presumed innocent until proven guilty beyond a reasonable doubt.
This case forms part of a broader initiative by California's COVID-19 Fraud Enforcement Strike Force, one of five such teams established by the U.S. Department of Justice to combat pandemic relief fraud. These strike forces aim to address large-scale fraud involving criminal organizations through prosecutor-led investigations supported by data analysis.