David X. Sullivan, United States Attorney for the District of Connecticut, announced that Omar Rajeh, 57, from Hamden, has been sentenced to 15 months in federal prison. U.S. District Judge Stefan R. Underhill delivered the sentence in Bridgeport for Rajeh’s role in defrauding COVID-19 pandemic relief programs of over $750,000. Additionally, Rajeh must pay a $2,000 fine and will be subject to two years of supervised release.
Court documents reveal that the CARES Act of March 2020 provided financial assistance through forgivable loans for small businesses via the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDLs), both overseen by the U.S. Small Business Administration (SBA).
Rajeh was involved with Mediterranea LLC and M. Café Inc., based in New Haven. Al Amir LLC was reestablished in July 2020 to apply for pandemic loan funding after its dissolution in 2018.
Between June 2020 and May 2021, approximately $1,057,244 was obtained fraudulently through PPP and EIDL applications submitted by Al Amir LLC, Mediterranea LLC, and M. Café Inc., as prepared by accountant Yasir Hamed. These applications contained false information about business operations and finances.
The funds were used by Rajeh for personal expenses, purchasing property in North Haven, general business expenses, and sending money overseas; he also returned around ten percent to Hamed.
Rajeh has agreed to pay $758,279 as restitution but will not be required to return $298,965 received legitimately for his restaurant business.
He pleaded guilty on December 20, 2023 to wire fraud and engaging in illegal monetary transactions and is expected to report to prison on October 1.
Yasir Hamed pleaded guilty on May 9th this year to related charges; his sentencing is pending.
This investigation was conducted by the FBI alongside the IRS Criminal Investigation Division with prosecution led by Assistant U.S. Attorney Christopher W. Schmeisser.
Anyone with information regarding COVID-19 related fraud is urged to contact the Department of Justice’s National Center for Disaster Fraud Hotline or submit a complaint form online.
