LAS VEGAS (KLAS) — A 40-year-old Las Vegas man pleaded guilty Thursday in a $1.9 million fraud scheme targeting COVID-19 relief funds.
Jorge Abramovs also pleaded guilty to collecting more than $350,000 from employees as paycheck withholdings that were never paid to the IRS from 2015 to 2019, according to the U.S. Attorney for the District of Nevada.
Abramovs pleaded guilty to one count of bank fraud, one count of monetary transactions in criminally derived property, and one count of willful failure to collect or pay over tax. U.S. District Judge Richard F. Boulware II scheduled sentencing for Jan. 6, when he will face a possible maximum sentence of 45 years in prison.
The scheme to steal CARES Act funds involved filing fraudulent bank loan applications — 12 Paycheck Protection Program loan applications to seven different lenders in the spring of 2020.
To support the fraudulent loan applications, Abramovs submitted false information about the businesses, fake tax documents and payroll schedules, and other forged documents.
Abramovs stole a total of $1,986,737, according to the U.S. Attorney’s Office. He spent the money on luxury condominiums, a Bentley, a Tesla, and payments on his home mortgage.
He also admitted failing to pay $475,000 in taxes owed to the IRS by his businesses.
The case was investigated by the FBI, IRS-Criminal Investigation unit and several other government agencies. Trial Attorney Joseph McFarlane of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jessica Oliva of the U.S. Attorney’s Office for the District of Nevada are prosecuting the case.
The announcement came from Christopher Chiou, Acting U.S. Attorney for the District of Nevada.