A Pennsylvania man, Alhaji Kundu Aly, aged 35, was sentenced to over six years in federal prison for his involvement in a fraudulent scheme to defraud the federal government by obtaining COVID-19 pandemic loans unlawfully. He had pleaded guilty on June 14, 2024, to one count of wire fraud.
Aly admitted during the plea agreement and sentencing hearing that he and his accomplices recruited individuals to apply for Paycheck Protection Program (PPP) loans they were not eligible for, in return for a fee. They submitted false and fictitious documents to various lenders to support these applications. Once the applicants received the loans, Aly demanded a part of the funds and, if necessary, traveled to make these demands in person. Aly acknowledged his accountability for approximately $3.5 million in losses resulting from over 170 fraudulent PPP loans.
Aly was sentenced by Chief Judge C.J. Williams of the United States District Court in Cedar Rapids. He received a 78-month prison sentence and was ordered to pay $3,478,781 in restitution to the Small Business Administration and two PPP lenders. Additionally, Aly will serve a three-year supervised release following his imprisonment. There is no provision for parole in the federal system.
Following his release on bond, Aly is required to surrender to the United States Marshal on April 28, 2025, at 10 a.m. in Philadelphia, Pennsylvania.
The prosecution was led by Assistant United States Attorney Timothy L. Vavricek. The investigation was conducted by the Small Business Administration, Office of Inspector General, and the Federal Bureau of Investigation, with assistance from the Internal Revenue Service, Criminal Investigations, and the U.S. Treasury Inspector General for Tax Administration.