Date: June 26, 2024 Contact: newsroom@ci.irs.gov Kansas City, MO — A former Overland Park, Kansas, man was sentenced in federal court today for fraudulently receiving more than $800,000 under the Coronavirus Aid, Relief, and Economic Security (CARES) Act for a business that was no longer in operation. Mirza Michael Reazuddin, currently a resident of Lawrenceville, Georgia, was sentenced by U.S. Chief District Judge Beth Phillips one year and six months in federal prison without parole. The court also ordered Reazuddin to pay $804,100 in restitution to the Small Business Administration and forfeit to the government $804,100, which represents the proceeds he personally obtained from the scheme, as well as his residential property in Lawrenceville. On Feb. 5, 2024, Reazuddin pleaded guilty to one count of wire fraud and one count of money laundering. Reazuddin was a partner in a hotel operation called Grandview Hotel, LLC, which was established in 2013 and ceased operations in 2018. Another company then took over operations of the hotel until it ultimately closed in 2021. The purpose of the CARES Act was to provide emergency financial assistance due to the economic impact caused by the COVID-19 pandemic. The Paycheck Protection Program (PPP) authorized the Small Business Administration to provide forgivable loans to small businesses to retain workers and maintain payroll, and make mortgage interest payments, lease payments, and utility payments. Under the PPP, both the principal and interest on those loans were eligible for forgiveness. On June 25, 2020, Reazuddin, on behalf of Grandview Hotel (which had ceased operations), applied for and received a PPP loan in the amount of $384,100. Reazuddin made numerous false statements on the application and submitted false and fraudulent documents in support of the application. Reazuddin used approximately $300,000 of the 2020 loan to purchase a home in Lawrenceville. On Jan. 26, 2021, Reazuddin, on behalf of Grandview Hotel, applied for and received a second draw of PPP funding in the amount of $420,000. Reazuddin made similar false statements on this application. This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS Criminal Investigation (IRS CI). CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.
