Rather than face up to 25 years in prison, nine people from throughout New York pleaded guilty to defrauding the state and federal government, announced the office of Queens District Attorney Melinda Katz on Feb. 13.
The thieves pleaded guilty to grand larceny in the fourth degree and petit larceny on various dates from May 2025 to February 2026.
“These nine defendants admitted to stealing thousands of dollars in state funds intended to support struggling businesses during the COVID-19 pandemic,” said Katz in a statement. “The funds were critical to helping New Yorkers survive an unprecedented crisis.”
As part of the plea deal, defendants Tufail Ahmed, 50, and Zakir Chowdhury, 59, both of Jamaica; Mahbub Malik, 41, of Astoria; Yousuf MD, 45, of Elmhurst; Mohammad Khan of Jamaica Hills; and Mohammed Chowdhury, also known as Khokan Ashraf, of Jackson Heights; along with Nadeem Sheikh, 56, Tanvir Milon, 55, and Juned Khan, 56, of Long Island, have agreed to making restitution payments totaling $1,091,720. Malik also received a three-year conditional discharge.
The Chronicle previously reported that five of them filed multiple applications for the Covid-19 Economic Injury Disaster Loan through the U.S. Small Business Administration.
Prosecutors said $760,00 has already been remitted to the state.
An investigation into the misuse of loan funds started by the state inspector general was referred to the DA’s Office in May 2024, and revealed that around June 2020, each of the nine culprits submitted multiple applications to New York’s Empire Development Pandemic Small Business Recovery Grant Program on behalf of numerous small business corporations.
They all certified that the money was needed to cover business expenses such as payroll, commercial rent or mortgage payments, utilities and supplies, but most of the loan money received was transferred, in several cases, immediately, into the personal bank accounts of the defendants. An extensive review of the bank records associated with the defendants’ firms did not indicate any business activity prior to receiving the grant proceeds and did not reflect any revenue or expenses listed on the tax returns submitted with the original applications.
The defendants surrendered to the DA’s Office from May 6 to May 9, 2025, when they learned about the charges against them.
“I thank my office’s Frauds Bureau and the New York State Inspector General’s Office for their partnership in holding them accountable,” said Katz. The NYPD Squad assigned to the DA’s Office provided crucial assistance.
State Inspector General Lucy Lang said exploiting disaster relief funds for personal gain is both criminal and shameful at any time, particularly during a global health crisis.
“New York will not stand for putting greed above the public good,” said Lang in a statement in which she also thanked law enforcement partners for securing both the guilty pleas and taxpayer money.