Nola Reporter

NEW ORLEANS – U.S. Attorney Duane A. Evans announced that Nipun Desai, formerly of Hammond, Louisiana, but now a California resident, age 55, pleaded guilty on July 10, 2024, before U.S. District Judge Wendy B. Vitter to making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

On March 27, 2020, the President of the United States signed into law the CARES Act, which provided emergency assistance administered by the United States Small Business Administration (SBA) to small business owners affected by the Coronavirus (COVID-19) pandemic. The two primary sources of funding for small businesses were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans (EIDL) program.

According to court records, on or about January 25, 2021, Desai made false statements to an approved lender in order to obtain an SBA-backed PPP loan in the amount of $146,947.50 for the Fairbridge Hotel in Metairie, Louisiana. At the time of the loan application, Desai’s hotel was permanently closed and had no employees or payroll.

Desai is scheduled to be sentenced on October 8, 2024. He faces up to five years in prison, a fine of up to $250,000, up to three years of supervised release and a $100 mandatory special assessment fee.

For more information on the Department of Justice’s response to the pandemic visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

As part of the Pandemic Response Accountability Committee (PRAC) Task Force this investigation was conducted by U.S. Department of Veterans Affairs - Office of Inspector General. The PRAC was established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 20 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud waste abuse and mismanagement in more than $5 trillion in COVID-19 spending including spending via PPP and EIDL programs. This case was also supported by PRAC’s Pandemic Analytics Center of Excellence which applies advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations.

U.S. Attorney Evans praised the work of U.S. Department Veterans Affairs - Office Inspector General Department Labor – Office Inspector General U.S Bankruptcy Trustee’s Office Region investigating matter Assistant U.S Attorney Edward J Rivera Financial Crimes Unit charge prosecution.