Tax preparer from New York sentenced in Virginia to two years in prison for PPP loan fraud
Richmond, Virginia – A New York man who used his tax preparation business to defraud a federal pandemic relief program has been sentenced to prison for falsifying hundreds of loan applications on behalf of clients during the COVID-19 pandemic. Baltej Singh Brar, 42, of South Richmond Hill, New York, was sentenced to two years in federal prison for submitting false statements through the Paycheck Protection Program (PPP), causing significant losses to the U.S. government.
A Scheme Built on Pandemic Desperation
Brar, who owned and operated Aspire Tax & Accounting Services Inc., was a registered tax preparer with the Internal Revenue Service (IRS). In 2021, during the height of the pandemic, Brar used his firm to prepare and file PPP loan applications on behalf of numerous clients, many of whom were sole proprietors such as taxi drivers, truck drivers, and construction workers.
The PPP was a government relief initiative designed to provide financial support to struggling businesses during COVID-19, offering loans backed by the Small Business Administration (SBA). These loans were intended to help businesses maintain payroll, rent, and utilities, with the possibility of forgiveness if used appropriately. However, Brar manipulated the system for personal gain.
Social Media Advertising and Fabricated Documents
Brar promoted his PPP loan services through social media platforms like TikTok, advertising that he would handle the entire application process for a flat up-front fee, plus an additional 10% of the loan amount once approved. Clients were instructed to submit sensitive personal documents, including their Social Security number, driver’s license, email, prior bank statements, 2019 tax return, and a voided check.
In preparing the applications, Brar falsely inflated his clients’ income figures when the reported amounts were too low to qualify for the maximum PPP loan amount of $20,833. He also created and submitted fake IRS forms as part of the supporting documents. On every application, Brar certified that the information provided was “true and accurate in all material respects.”
In many cases, Brar’s clients did qualify for some form of PPP assistance, but not in the inflated amounts he claimed. In other instances, the individuals were not eligible for PPP funds at all. In total, the fraudulent loan applications prepared by Brar led to at least $550,000 in actual losses to the Small Business Administration.
Federal Authorities Respond
Following a detailed investigation, Brar was sentenced by Senior Judge for the United States District Court for the Eastern District of Virginia John A. Gibney Jr. to two years in prison. The announcement was made by a coalition of federal law enforcement officials involved in the case.
“Brar certified on each application that the information provided in the applications and supporting documents and forms was ‘true and accurate in all material respects,’” authorities noted in the announcement.
The investigation and sentencing involved coordination between multiple federal agencies, including the U.S. Attorney’s Office for the Eastern District of Virginia, the Federal Deposit Insurance Corporation Office of Inspector General, the IRS Criminal Investigation, the U.S. Postal Inspection Service, the Office of Inspector General of the Federal Reserve and CFPB, the U.S. Secret Service, and the Small Business Administration Office of Inspector General.
This case marks another example of continued federal enforcement against those who exploited emergency relief programs intended to help Americans during a time of crisis.
