Sandeep Grover, a 54-year-old individual from Massapequa, has been indicted by the US Attorney’s Office in the Southern District. The charges include major fraud against the US, conspiracy to commit wire fraud and bank fraud, as revealed in an unsealed indictment on Wednesday, May 24.
Grover is the proprietor of Excellent Business Services Inc., a tax preparation business located in Seaford. According to prosecutors, between April 2020 and June 2021, he allegedly submitted over 100 applications for Paycheck Protection Program (PPP) loans to at least seven financial institutions, using false information.
The PPP, which was established by Congress in 2020, aimed to provide relief to small businesses that were adversely affected by the COVID-19 pandemic. However, it is alleged that Grover deceitfully sought loans on behalf of numerous companies, both his own and clients’, by fabricating IRS filings.
Prosecutors claim that in these applications, Grover falsely stated that each business had multiple employees and substantial monthly payroll expenses. However, it is alleged that these businesses did not report wages to the Social Security Administration as claimed.
Investigators contend that Grover enlisted the assistance of others, including co-conspirator Shikha Sehgal, a 43-year-old resident of Deer Park. The group is believed to have opened bank accounts for non-operational companies, created counterfeit invoices, and submitted fraudulent applications for multiple PPP loans.
Furthermore, it is alleged that Grover used personal information belonging to one of his employees to secure a loan. The illicit proceeds from the scheme, totaling more than $13 million, were purportedly spent on various activities such as acquiring new property, settling personal loans, and covering expenses for other companies under Grover’s control.
FBI Assistant Director-in-Charge Michael Driscoll expressed his views on the matter, stating, “The defendants allegedly devised a scheme to exploit the Paycheck Protection Program for millions of dollars for personal use rather than qualifying expenses.” Driscoll emphasized that such fraudulent activities not only defraud a program designed to assist small businesses during a global pandemic but also defraud the American taxpayers.
Grover and Sehgal have each been charged with one count of major fraud against the US and one count of conspiracy to commit wire fraud and bank fraud. Additionally, Grover faces one count of aggravated identity theft.
If convicted, they could face a maximum sentence of 40 years in federal prison.
