Sandeep Grover, 54, of Massapequa, was charged with felony fraud against the United States and conspiracy to commit wire fraud and bank fraud, according to an indictment unsealed Wednesday, May 24 by the U.S. Attorney’s Office for the Southern District.
Grover is the owner of Excellent Business Services Inc., a Seaford-based tax preparation firm.
Between April 2020 and June 2021, he used false information to submit more than 100 Paycheck Protection Program (PPP) loan applications to at least seven financial institutions, prosecutors said.
The PPP was established by Congress in 2020 to provide relief to small businesses impacted by the COVID-19 pandemic.
According to prosecutors, Grover applied for loans on behalf of dozens of his own companies as well as client companies for which he created fake IRS documents.
Prosecutors said his application claimed that each business had multiple employees spending tens of thousands of dollars a month on payroll when in reality they did not report wages to the Social Security Administration.
Grover’s plan was aided by others, including Deer Park accomplice Shikha Sehgal, 43, according to investigators.
Together, the syndicate allegedly opened bank accounts for companies with no business, produced fake invoices, and submitted fraudulent applications for numerous PPP loans.
Grover also used the personal information of one of his employees to obtain loans, prosecutors said.
Proceeds from the scheme – totaling more than $13 million – are said to have been used to purchase new properties, repay personal loans and pay for other companies under Grover’s control.
“Defendants allegedly devised a scheme to use the Paycheck Protection Program to direct millions of dollars for personal use rather than qualifying expenses,” FBI Assistant Director Michael Driscoll said in a statement.
“A fraudulent scheme like this not only defrauded a program designed to help small businesses survive the global pandemic, but also defrauded the American taxpayer.”
Grover and Sehgal were each charged with one count of grand fraud against the United States and one count of conspiracy to commit wire fraud and bank fraud.
Grover was also charged with one count of aggravated identity theft.
If convicted, they could serve up to 40 years in federal prison.
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