Earlier in the day, the federal court in Central Ispel, Constantino Zardadas, found Glen Cove-based doctor guilty of accepting millions of dollars in small business loans under the Disaster Relief and Paycheck Protection Program. PPP and Economic Disaster Loan Program (EIDLP). Today’s trial is set by U.S. District Judge Gary R. Zarkas was sentenced to up to 30 years in prison and fined $ 3,796,849.50 and up to $ 250,000.
Bren Pice, United States East District Attorney for the United States, Michael J. Driscol, Assistant Director of the Federal Bureau of Investigation, New York Field Office (FBI) Assistant Director, and Thomas Fatoroso, Special Representative, Internal Revenue Service – Criminal Investigation, New York (IRS-CI) have pleaded guilty.
“The defendant, a medical professional, admits that he spent millions of dollars on luxurious watches and vehicles on the Covide-19 Emergency Fund and to support a sedentary lifestyle, including the cost of a shipwreck.” . “This office strongly prosecutes those who steal government programs to help small businesses and families in need during the epidemic.
It is always a shame to see programs that are designed to help ordinary people cope with the flu. Dr. Zardadas chose greed over loyalty by financing the luxury of living behind American taxpayers. This, along with many others, shows that the IRS-CI is constantly working to eliminate financial fraud. The IRS-CI would like to thank the FBI and the US Attorney’s Office for their partnership and investigative efforts in this matter.
According to court records, between March 2020 and July 2020, during the Covide-19 epidemic, Dr. Zardadas received a total of $ 3.7 million in loans, including 11 PPP and EIDLP loans. . Zarkadas illegally diverted the proceeds of the loan through various bank accounts that he controlled and used the money for personal purchases and other unauthorized purposes. For example, In July 2020, Zardadas spent $ 1.75,915.42 on PPP funds for small businesses affected by the epidemic to make an advance payment on a $ 1.75 million boat. To cover up the fraudulent purchase, Zerkadas lied and paid the check to a non-beneficiary family member, falsely claiming on the check line that the money was “a salary.” Zardadas spent tens of thousands of loans in cash and used some of that money to settle more than a million dollars, rent luxury cars and make personal purchases, including several Rolex and Cartier watches. He agreed to disappear at today’s hearing.
Congress created PPP and EIDLP as part of the Coronary Aid, Relief and Economic Security (CARES) Act. A.D. The CARES Act of March 29, 2020 provided emergency financial support in connection with the economic impact of the Covide-19 epidemic. One source of assistance provided by the CARES Act is the PPPP for small businesses for maintenance and some other expenses. PPP allows eligible small businesses to take out unsecured loans. The PPP apologized for the loan if the recipient businesses spent the money for a specified period of time and used it for a certain percentage of salary expenses.
Another source of assistance provided by CARES is EIDPP. The amount of EIDL Advance depends on the number of employees working for the applicant. No need to pay for EIDL Advance.
The case is being handled by the Long Island Criminal Division. Assistant Prosecutor Anthony Bagnula leads the prosecution.
Age of death 48
Glenn Cove, New York
EDNY Document No. 21-CR-363 (GRB)