QUEENS, NY – Nine defendants have pleaded guilty to stealing more than $1 million in pandemic relief funds intended to support struggling small businesses during the COVID-19 crisis, prosecutors announced.
Queens District Attorney Melinda Katz and New York State Inspector General Lucy Lang said the defendants admitted submitting fraudulent applications to the New York State Empire Development Pandemic Small Business Recovery Grant Program and diverting grant money for personal use. As part of their pleas, they were ordered to pay restitution totaling $1,091,720. Authorities said $760,000 has already been repaid to the state.
The defendants pleaded guilty on various dates between May 2025 and February 2026 in Queens Supreme Court to charges including grand larceny in the fourth degree and petit larceny. One defendant, Mahbub Malik, 41, of Astoria, received a three-year conditional discharge after pleading guilty to grand larceny in the fourth degree.
According to prosecutors, beginning around June 2020, the defendants submitted multiple applications for state relief funds on behalf of small business corporations. Each applicant certified the money would be used for payroll, rent, utilities, or supplies. Investigators allege that most of the funds were quickly transferred into personal bank accounts.
Investigation uncovered lack of legitimate business activity
Authorities said a review of associated bank records showed no evidence of legitimate business activity before the grants were issued. Records also did not reflect revenue or expenses listed on tax returns submitted with the original applications.
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The New York State Office of the Inspector General launched the investigation into misuse of pandemic funds and referred the case to the Queens District Attorney’s Office in May 2024. The defendants surrendered separately between May 6 and May 9, 2025, after learning of the charges.
• Nine defendants pleaded guilty to stealing pandemic relief funds
• Restitution ordered totals more than $1 million
• $760,000 has already been returned to New York State
District Attorney Katz credited her office’s Frauds Bureau and the Inspector General’s Office for their joint investigation, which included assistance from an NYPD squad assigned to the Queens District Attorney’s Office.
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