PLANO, Texas – A Carrollton man has been charged with federal violations related to a COVID-19 fraud scheme in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Faruk Syed, 44, was named in the two-count indictment returned by a federal grand jury on August 15, 2024, in the Eastern District of Texas. The indictment charges Syed with conspiracy to commit wire fraud and money laundering. Syed made his initial appearance today before U.S. Magistrate Judge Kimberly C. Priest Johnson.
According to information presented in court, Syed was employed by the U.S. Small Business Administration as a loan specialist and was responsible for reviewing and approving applications for Economic Injury Disaster Loans (EIDL) related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Syed allegedly conspired to submit multiple fraudulent applications for EIDL loans requesting hundreds of thousands of dollars of CARES Act funds. As an SBA loan specialist, Syed approved these fraudulent loan applications in his official capacity. He then received the loan proceeds and laundered the money through his Fidelity Investment account…