Washington tech executive pleads guilty to wire fraud and PPP loan laundering
Clyde Hill’s Mukund Mohan submitted eight fraudulent PPP loan applications on behalf of six different companies, according to the US attorney’s office.
CLYDE HILL, Wash. – A Washington tech executive pleaded guilty to wire fraud and money laundering after securing $ 5.5 million in paycheck protection program loans and laundering the proceeds.
The Paycheque Protection Program is a federal government loan designed to help small businesses keep their employees on the payroll. PPP loans are intended to help businesses finance labor costs, worker protection costs, and other costs related to COVID-19.
Clyde Hill’s Mukund Mohan has submitted at least eight fraudulent PPP loan applications on behalf of six different companies, according to Acting U.S. Attorney for the Western District of Washington Tessa Gorman. Mohan has made several false and misleading statements about business operations and company salary expenses on the apps.
According to federal prosecutors, Mohan submitted false and amended documents, including false federal income tax returns and amended incorporation documents along with the requests.
In one case, Mohan misled a lender into believing his company Mahenjo Inc. had dozens of employees and paid millions of dollars in salaries and payroll taxes in 2019, federal prosecutors said. He also submitted documents showing he incorporated the company in 2018 and filed federal unemployment tax forms in 2019.
In fact, Mohan bought Mahenjo Inc. on the Internet in May 2020. At the time he bought the company, it had no employees and no business activity, according to the US Department of Justice. The incorporation documents that Mohan submitted to the lender were changed and the federal income tax returns he submitted were false.
Federal officials seized all but $ 16,000 in federal loans from Mohan’s accounts. Under the terms of the plea deal, the prosecution will recommend that Mohan pay a fine of $ 100,000 in addition to his restitution.