A federal jury in Cleveland has convicted Mustafa Ayoub Diab, 41, from Ravenna, Ohio, of organizing a plan to defraud the U.S. government of pandemic-related funds. Diab was found guilty of several charges including theft of government funds, bank fraud, and wire fraud. He also faced charges of aggravated identity theft, conspiracy to commit fraud, and money laundering.
The court documents highlight that Diab owned a tax preparation business in Akron, Ohio, where he, along with his co-conspirator Elizabeth Lorraine Robinson, 33, executed a scheme to exploit expanded unemployment and small business benefits introduced during the COVID-19 pandemic.
Diab took advantage of the Pandemic Unemployment Assistance Program and the Paycheck Protection Program, which were created to support individuals and small businesses impacted by the pandemic. From June 2020 to August 2021, he filed fraudulent applications for his clients, without their knowledge, to illegally obtain pandemic funds. Diab falsified information about their employment status or business ownership to qualify them for these benefits.
During the investigation, it was discovered that Diab opened bank accounts using his clients' identities to redirect pandemic funds received from the government. He also set up accounts in the names of Robinson and his sister. These funds were then withdrawn in cash for personal use, including purchasing real estate, cars, and funding international trips. Evidence presented during the trial showed that Diab created fraudulent applications for nearly 80 victims, leading to the misappropriation of over $1.2 million in pandemic benefits.
The sentencing for Diab is set for July 28, 2025. He could face up to 30 years in prison, with the final sentence to be determined by a federal district court judge after reviewing applicable guidelines and statutory considerations.
Robinson, who pleaded guilty to related charges in February, is awaiting sentencing and also faces a possible 30-year prison term.
The FBI Akron Division conducted the investigation, while Assistant U.S. Attorneys Vanessa V. Healy and Brenna L. Fasko handled the prosecution for the Northern District of Ohio.