Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that Yasir G. Hamed of Woodbridge has pleaded guilty to defrauding a COVID-19 pandemic relief program of over $2.3 million. The plea was entered before U.S. District Judge Stefan R. Underhill in Bridgeport.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted in March 2020, aimed to provide financial assistance during the pandemic through forgivable loans to small businesses via the Paycheck Protection Program (PPP). The program was managed by the U.S. Small Business Administration (SBA), with loans issued by private lenders.
Hamed, an accountant with ties to several New Haven-based businesses such as Access Consulting and Professional Services Inc., and others, submitted fraudulent PPP loan applications between June 2020 and September 2021. He overstated employee numbers and payroll figures and submitted false tax filings.
He also applied for PPP loans on behalf of his clients' companies, sometimes convincing inactive business owners to apply for funding. Hamed took a significant portion of these loan proceeds.
The scheme resulted in Hamed obtaining more than $2.3 million in PPP loans for his businesses and clients, securing over $1 million for himself and his family. He used the funds for personal expenses including education costs and a downpayment on a house in Woodbridge.
Hamed has agreed to pay restitution amounting to $2,384,772. He pleaded guilty to bank fraud and engaging in illegal monetary transactions, offenses carrying maximum prison terms of 30 years and 10 years respectively. Sentencing is set for August 8.
Arrested on November 13, 2024, Hamed is currently released on a $500,000 bond pending sentencing.
The investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. Assistant U.S. Attorney Christopher W. Schmeisser is prosecuting the case.
Individuals with information about COVID-19-related fraud are urged to report it through the Department of Justice’s National Center for Disaster Fraud Hotline or online complaint form.