MINNEAPOLIS (WCCO) — The United States Attorney Erica H. MacDonald announced Monday that a 47-year-old Maple Grove man faces a federal charge accusing him of defrauding the U.S. Small Business Administration’s Paycheck Protection Program (PPP).
Aditya Raj Sharma was arrested on Nov. 13 and has since been federally charged with one count of wire fraud. He made his first appearance in U.S. District Court in St. Paul Monday.
According to the indictment, Sharma submitted a false and fraudulent loan application seeking $562,500 through the PPP, which was meant to help businesses struggling during the pandemic. He allegedly said he had 29 employees on payroll even though records show he paid no wages to a single employee.
The application was subsequently approved and he received the funds. He then allegedly used the money to enrich himself personally, transferring $500,000 to a personal bank account, putting $5,000 down toward the installation of a pool worth $64,300 and transferring another $14,000 to a financial account in India.
The FBI investigated this case.
Source: CBS Minnesota