Indictment: Lexington man lied to get COVID-19 relief loan, pocketed nearly $50K
A man from Lexington has been federally indicted after allegedly putting COVID-19 relief funds intended for businesses into his personal bank account, according to court documents.
An indictment states that Shaan Ti Diyali started a broker insurance company called Your Choice Services, LLC. in January 2020, two months before the pandemic struck. But the grand jury alleged that Diyali’s company was effectively a shell company.
“At no relevant time did this business establish a business checking account, hire any employees, open an office, have any business expenses, or sell or broker any policies of insurance,” the grand jury alleged in its indictment. “In effect, Your Choice Services, LLC was a paper shell company without any business activity.”
In May 2020, Diyali allegedly got a $49,900 COVID-19 relief loan after he filled out an application saying Your Choice Services made $100,000 worth of business income in the 12 months prior to January 2020.
A federal grand jury alleged that Diyali devised a scheme to defraud and obtain money from the Small Business Administration which provided loans as allowed by the Coronavirus Aid, Relief, and Economic Security Act during the pandemic, according to court documents.
The emergency loans administered by the SBA were intended to help businesses combat the pandemic’s impact on the economy.
The indictment said the shell company suffered no economic hardship because of the pandemic. Diyali placed the loan funds in his personal bank account.
If convicted, Diyali could face up to 20 years in prison. He could also be forced to pay a fine of $250,000 as well as restitution.
The Department of Justice has made a concerted effort to deal with pandemic-related fraud in the past 11 months. In May 2021, the U.S. Attorney General’s office established a task force to prevent fraudsters attempting to illegally take advantage of the COVID-19 pandemic as well as prevent fraud.
The DOJ has a tip system which allows people to report pandemic-related fraud issues to the federal government.
This story was originally published April 22, 2022 at 9:29 AM.
