Charlotte Tax Preparer Sentenced for $780K COVID-19 Relief Fraud

Photo byJonathan Rose

Authorities said on Thursday that a tax preparer from Charlotte had been sentenced to 2 1/2 years in jail for money laundering and fraudulently collecting $780,000 in COVID relief monies from the federal government.

According to a press release from the US Department of Justice, Zadih Cadyma, 66, got money through the Paycheck Protection Program and the Economic Injury Relief Disaster Loan.

According to Dena King, U.S. attorney for the Western District of North Carolina, the fraudulent scheme took place between 2020 and 2021.

Pictured: Dena King, U.S. Attorney for the Western District of North Carolina.Photo byRick Hovis

Among other companies, Cadyma was the owner of CFE Tax Services in Charlotte. He obtained five false loans totaling $550,000 from the EIDL program and two PPP loans totaling $230,000 from the Coronavirus Aid, Relief, and Economic Security Act.

Authorities claim that in order to obtain the funds, Cadyma falsified information on the applications regarding revenues, payroll costs, staff numbers, and other operating expenses.

The news announcement stated that Cadyma utilized the funds to finance his lifestyle and buy a new luxury car; it did not specify which car he purchased.

On April 27, 2023, he entered a guilty plea to wire fraud and money laundering.

Following his prison term, Cadyma was also mandated to serve three years of supervised release and make restitution of over $763,000.

Donald Eakins, a special agent overseeing criminal investigations for the Internal Revenue Service in Charlotte, and Robert DeWitt, a special agent with the FBI in North Carolina, accompanied King for the announcement. The case was prosecuted by Assistant U.S. Attorney Graham Billings.

COVID-19 FRAUDULENT SCHEMES IN THE CHARLOTTE AREA

Dena J. King, U.S. Attorney for the Western District of North Carolina, announced on January 3, 2024 that Donte O'Neill Clements, 35, of Charlotte, was sentenced to 10 years in prison followed by three years of supervised release. He was also ordered to pay $993,081 in victim restitution for his involvement in a COVID-19 fraud scheme, drug distribution, and illegal gun possession.

A former Huntersville couple was accused in February of defrauding the federal government of $2 million in bank loans and COVID relief monies for their moving company.

About thirty persons have been charged with scamming government financing programs by the U.S. Attorney's Office for the Western District of North Carolina thus far.

Sources:

https://www.charlotteobserver.com/news/business/article287176940.html

https://www.justice.gov/usao-wdnc/pr/charlotte-man-sentenced-10-years-prison-covid-19-fraud-drug-distribution-and-illegal