A Pennsylvania man was sentenced to more than six years in federal prison for organizing a scheme to defraud the government out of COVID-19 pandemic loan money in 2021.
Alhaji Kundu Aly, 35, received his sentence after pleading guilty to one count of wire fraud.
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Aly admitted that he and others helped many people in the Northern District of Iowa apply for Paycheck Protection Program (PPP) loans for which they were not eligible in exchange for a fee.
Financial institutions received false documents and statements in order to grant loans.
After the PPP applicants received their loans, Aly claimed a percentage of the PPP funds from them.
If Aly did not receive payment, he would go to the applicant and demand money in person.
Aly admits to doing this with an application in Iowa.
He also admitted that he was responsible for around $3.5 million in damages resulting from over 170 bogus PPP loans.
Aly was sentenced to 78 months in federal prison.
He has also been ordered to pay $3,478,781 in restitution to the Small Business Administration and two private-public partnership lenders.
