BALTIMORE, MARYLAND – On Friday, Baltimore man Alexander Barabash, 52, pleaded guilty to wire fraud in relation to submitting fraudulent Coronavirus Aid, Relief, and Economic Security (CARES) Act loan applications. Barabash fraudulently obtained over $1.2 million in CARES Act loans intended for struggling businesses. Between April 2020 and January 2021, he submitted three fraudulent Paycheck Protection Program (PPP) loan applications on behalf of his construction company, iDesignbuild LLC. The fraudulent applications contained false information about the number of employees and the company’s payroll. Barabash used the loans to buy two properties in Sparks Glencoe, Maryland, and a 2016 Chevrolet Corvette.
Barabash faces a maximum sentence of 30 years in federal prison for wire fraud. He will be required to pay a money judgment of $1,295,000 and forfeit $504,869.54 in funds seized from the iDesignBuild business bank account. Barabash has also agreed to forfeit his interest in a property in Sparks Glencoe, Maryland, as a substitute asset. The net proceeds from this property will be applied to the money judgment.