In Greeneville, Tennessee, 53-year-old Ketan Ghutadaria from Johnson City has been sentenced to two years in prison for his role in defrauding the Economic Injury Disaster Loan (EIDL) program, part of the COVID-19 relief efforts under the CARES Act. The sentencing was handed down on March 18, 2024, by United States District Judge J. Ronnie Greer of the Eastern District of Tennessee.
Following his prison term, Ghutadaria will be under supervised release for a year and is ordered to pay restitution amounting to $100,300. This decision comes after Ghutadaria’s guilty plea to Aggravated Identity Theft, acknowledging his scheme to exploit the EIDL program by using another person’s identity.
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The investigation revealed that Ghutadaria applied for an EIDL on March 31, 2020, using the personal identification information of a local trucking company owner without their knowledge. The Small Business Administration (SBA) approved the fraudulent application, leading to a transfer of $100,300 to a bank account under Ghutadaria’s control. He used these funds for personal expenses, including paying off student and vehicle loans.
The case was brought to attention by U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee, along with United States Secret Service Resident Agent in Charge Jason Brown. Special Agent Thomas Whitehead of the USSS led the investigation, with Assistant United States Attorneys Mac Heavener and Ryan Blackwell representing the prosecution.
This sentencing aligns with the efforts of the Department of Justice’s COVID-19 Fraud Enforcement Task Force, established to combat pandemic-related fraud. The Task Force aims to prosecute criminal actors and prevent fraud in relief programs by enhancing coordination and sharing information gained from enforcement efforts.
For more information on the government’s response to pandemic-related fraud or to report attempted fraud involving COVID-19, visit the Department of Justice’s coronavirus resource page at https://www.justice.gov/coronavirus or use the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Source: Read Original Release