BROOKLYN, NY – Two Brooklyn contractors, a father and son, have been indicted for grand larceny for allegedly defrauding more than $1 million from the Paycheck Protection Program (PPP) during the Covid-19 pandemic, according to an announcement by Brooklyn District Attorney Eric Gonzalez. The defendants, Nurus Safa, 65, and Maidal Safa, 34, are accused of submitting fraudulent loan applications and using the funds to purchase two homes in New Jersey and a luxury BMW sports sedan.
The indictment alleges that the defendants submitted falsified tax returns that inflated their company’s revenues to obtain the PPP loans, which were meant to assist struggling businesses in paying employees and covering legitimate expenses. Instead, the funds were allegedly diverted for personal use, including the real estate and luxury car purchases.
“These defendants allegedly engaged in a shameless scheme to steal more than $1 million from the Paycheck Protection Program,” District Attorney Gonzalez said. “We will now seek to hold them accountable.”
The charges were brought in collaboration with the U.S. Small Business Administration (SBA) and the U.S. Department of Labor’s Office of Inspector General. The defendants were arraigned before Brooklyn Supreme Court Justice Dena Douglas on a 19-count indictment, including charges of first- and second-degree grand larceny, second-degree criminal possession of a forged instrument, and first-degree falsifying business records.
SBA General Counsel Therese Meers emphasized the importance of joint efforts between federal and local agencies in combating pandemic-related fraud, while Special Agent-in-Charge Jonathan Mellone reiterated the Department of Labor’s commitment to investigating such fraud.
The Safas were released without bail and are scheduled to return to court on October 30, 2024.