Oh, The Games People Play…Restaurant Owners Cook Up Scheme Receiving $1.7 Million on Phony PPP Applications
A restaurant owner and his son have been charged for their participation in a scheme to obtain more than 1.7 million dollars by filing fraudulent loan applications through Payroll Protection Program.
Izzat Freitekh and his son Tarik submitted fraudulent PPP applications on behalf of three companies: La Shish Kabob restaurant, Aroma Packaging Systems and Green Apple Catering, all in Charlotte, North Carolina.
In the case of Green Apple, the Freitekhs claimed that the company paid employees 4.8 million dollars in 2019, despite evidence that the company did not exist until March 2020.
The older Freitekh also lied to IRS agents and claimed that a company called Kyber Capital submitted the fake applications.
Of the 1.7 million dollars paid out to the Freitekhs, 1.3 million has been recovered by law enforcement. Both men face up to 30 years in prison and a million-dollar fine.
About the Author
Gregory McCauley Jr., Esq.
Tax Attorney · Villanova University School of Law · Admitted in Delaware, New Jersey, United States Tax Court
Gregory McCauley Jr. is an experienced tax attorney who has personally represented more than 1,000 clients in matters ranging from civil tax controversy and IRS examinations to criminal tax defense, U.S. Tax Court litigation, and complex business disputes. His practice is built on a foundation his c...
