The DOJ has made clear, yet again, that pandemic-era financial misconduct will not be swept under the rug. Rahul Shah, a 56-year-old businessman from Evanston, Illinois, has been convicted for orchestrating a scheme that siphoned over $55 million through obtaining commercial loans and credit lines, as well as submitting fraudulent applications for COVID-19 relief funds backed by the U.S. Small Business Administration under the Paycheck Protection Program (PPP).
According to the evidence submitted at trial, Shah, who operated several information technology firms in the Chicago area, exploited the PPP—a lifeline for small businesses during the pandemic—by submitting fraudulent loan applications that overstated payroll expenses. He backed these claims with fake IRS documents and even used stolen identities to bolster his application. Shah also submitted falsified bank statements, inflated balance sheets, and fabricated audited financials to secure commercial loans and lines of credit. He later defaulted on at least one loan and one credit line, leaving financial institutions grappling with the fallout.
A federal jury convicted Shah of seven counts of bank fraud, five counts of making false statements to financial institutions, two counts of money laundering, and two counts of aggravated identity theft. Shah is scheduled to be sentenced on November 13, 2025, and he now faces a potential sentence of up to 30 years for each count of bank fraud and false statements, 10 years for each money laundering charge, and 2 years for each identity theft count.
This case is a sobering reminder that the DOJ will continue to pursue those who exploited the PPP during the pandemic. The attorneys at Chilivis Grubman represent clients of all types and sizes in connection to white collar crime. If you need assistance with such a matter, please contact us today.