Owner of multiple CT businesses admits to defrauding COVID relief program out of over $2.3M
A Woodbridge man has pleaded guilty to federal charges in connection with a scheme to defraud a COVID-19 pandemic relief program out of more than $2.3 million.
Yasir G. Hamed, 60, waived his right to be indicted and pleaded guilty during a hearing last Friday in federal court in Bridgeport, according to the U.S. Attorney's Office for the District of Connecticut. He pleaded guilty to bank fraud and engaging in illegal monetary transactions.
The charges expose Hamed to a combined 40 years in prison. Sentencing has been scheduled for Aug. 8.
According to federal officials, the fraud occurred between June 2020 and September 2021 when Hamed submitted fraudulent Paycheck Protection Program (PPP) loan applications on behalf of multiple companies with which he had an affiliation. Authorities said the fraud involved overstating employee numbers and average monthly payroll, and making other phony representations. As part of the applications, he submitted false tax filings that had never been filed with the IRS, according to officials.
Hamed had an ownership interest or representative relationship with several New Haven-based businesses including Access Consulting and Professional Services Inc., Connecticut Medical Transportation Inc., Arabic Language Learning Program Inc., Institute for Global Educational Exchange Inc., Access Medical Transport Inc., Ikea Car & Limo Inc., Center of the World Tours, North America LLC and Sudanese American Friendship Association Inc., officials said.
Hamed, an accountant, also reportedly submitted PPP loan applications on behalf of companies owned by his clients. In at least one instance, officials said Hamed convinced the owner of a business that was not active and had no employees to seek PPP funding. Hamed prepared the paperwork for the application and then took a 'significant portion' of the loan proceeds, authorities said.
According to federal authorities, Hamed obtained more than $2.3 million in PPP loans for his businesses and for his clients. His cut reportedly totaled more than $1 million 'for himself and his family, and significant kickbacks from his clients,' the U.S. Attorney's Office wrote in a statement.
Hamed reportedly used the money for personal expenses, including education expenses for a family member, and for a down payment on an $880,000 house in Woodbridge that he purchased in October 2020. As part of the plea deal, he agreed to pay a little more than $2.3 million in restitution.
Hamed was arrested in November 2024 and is free on a $500,000 bond while he awaits sentencing.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
an hour ago
- Business Insider
Upcoming Stock Splits This Week (June 23 to June 27)
These are the upcoming stock splits for the week of June 23 to June 27, based on TipRanks' Stock Splits Calendar. A stock split takes place when a company increases its number of outstanding shares by issuing more to existing shareholders, effectively reducing the price per share without altering the firm's overall market capitalization. While the underlying value remains the same, the lower share price makes the stock more accessible to everyday investors and may help boost market interest. Confident Investing Starts Here: Meanwhile, a reverse stock split does the opposite, shrinking the share count by consolidating existing shares into fewer units. This pushes the stock price higher while keeping the total valuation the same. It's a common move for companies trying to meet exchange listing requirements, especially if their share price is flirting with minimum thresholds like those set by the Nasdaq. Whether it's about attracting more investors or holding onto a listing, these corporate actions can offer valuable clues about a company's strategy and where it sees itself heading next. Let's take a look at the upcoming stock splits for the week. Pegasystems (PEGA) – Pegasystems is a leading provider of enterprise AI-powered decisioning and workflow automation software. On June 17, the company announced a 2-for-1 forward stock split, aimed at improving share accessibility for retail investors. PEGA stock is expected to begin trading on a split-adjusted basis on June 23. TruGolf Holdings (TRUG) – Specializing in high-end golf simulator technology, TruGolf aims to bring the driving range indoors. On June 18, the company announced a 1-for-50 reverse stock split to help maintain compliance with Nasdaq's listing requirements. The split is set to take effect on June 23. Maase (MAAS) – China-based Maase, a digital platform company, is switching from trading American Depositary Shares (ADSs) to listing its regular shares directly on the Nasdaq. To prepare for this transition, the company announced a 1-for-90 reverse stock split on June 18, meaning every 90 ADSs will be converted into one regular share. The split takes effect when the market opens on June 23, 2025. Super League Enterprise (SLE) – Super League builds immersive experiences across gaming and metaverse platforms. On June 18, the company announced a 1-for-40 reverse stock split, designed to boost the share price and extend its Nasdaq listing runway. The stock will begin trading on a split-adjusted basis on June 23. KULR Technology Group (KULR) – Focused on thermal management and battery safety for aerospace and EV markets, KULR announced a 1-for-8 reverse stock split on June 13 to regain compliance with Nasdaq's minimum bid price rule. The stock will begin trading on a split-adjusted basis on June 23. Stem, Inc. (STEM) – Leveraging AI to boost grid-scale energy efficiency, Stem announced a 1-for-20 reverse stock split on June 11 to comply with the NYSE's minimum bid price requirement. The stock will begin trading on a split-adjusted basis on June 23. Cellectar Biosciences (CLRB) – Cellectar is a clinical-stage biotech developing phospholipid drug conjugates for targeted cancer treatment. On June 18, the company announced a 1-for-30 reverse stock split, following shareholder approval the prior week. The move is aimed at regaining compliance with Nasdaq's minimum bid price requirement. The split is slated to go into effect on June 24. Jiade Limited (JDZG) – China-based Jiade Limited, which focuses on adult education and logistics services, announced on June 20 that it would implement a 1-for-8 reverse stock split, effective June 24, consolidating its shares and updating its CUSIP to regain compliance with Nasdaq's minimum bid price requirement.
American Military News
2 hours ago
- American Military News
Widespread pay cuts in China drive down consumer spending, fuel deflationary fears
This article was originally published by Radio Free Asia and is reprinted with permission. Chinese workers across industries are facing salary cuts and layoffs as mounting economic woes engulf China's public and private sectors, sources tell Radio Free Asia. That's forcing families to slash spending. It is also triggering deflationary concerns as businesses enter into desperate price wars. From Beijing's central government offices to provincial agencies across China, as well as major state-owned enterprises like investment bank China International Capital Corp (CICC), employees have faced substantial pay reductions that have reduced household budgets and fundamentally altered consumer spending patterns. 'I used to earn 6,000 yuan (or US$835) a month but now I only get 5,000 yuan (US$696), and some allowances have been removed too,' Li, an employee at a Beijing-based state-owned enterprise, told RFA. Like many others interviewed for this story, Li wanted to be identified by a single name for safety reasons. 'Some people in my wife's company have also had their salaries cut and some have received layoff notices, saying they will only work until July-end,' said Li. In Zhejiang, regarded one of China's most prosperous provinces, ordinary civil servants have had their annual salaries slashed by 50,000 to 60,000 yuan (or US$6,964-US$8,356) this year, Zheng, a resident of the province's Zhuji city, told RFA. Civil servants in more senior positions have seen deeper reductions to their annual pay of around 80,000 to 100,000 yuan (or US$11100-US$13900) and others in still higher levels by about 150,000 yuan (or US$20,890), Zheng said. 'There was already a reduction two years ago. This year's salary is reduced again,' he added. The cuts indicate the financial strain on local governments, as domestic economic challenges lead to tepid consumer demand and price pressures. That's impacting businesses' ability to pay taxes. Additionally, local governments are grappling with a decline in land transfer sales revenue amid weak property market demand. For 2025, China's provincial regions have set cautious fiscal revenue estimates, with an average growth target of 2.8% for their general public budget revenue, which is the sum of tax and non-tax revenue. That's down 1.6 percentage points from 2024's target average, as revenue generation challenges continue to weigh on local governments, economists say. For example, in Shandong, many real estate projects have been suspended for the past two years with no land sales recorded, impacting the local government's already large fiscal debt levels, said one blogger based in the northeastern coastal province, according to texts and pictures posted on X account @whyyoutouzhele, also known as 'Mr. Li is not your teacher,' who posts content on that platform to circumvent Chinese government censorship. Another Shandong resident, named Geng, told RFA, that county and township level officials in the province have had their salaries slashed by 30%, with payments frequently delayed. 'Now the county-level finances have been depleted, and the benefits for police officers have also been reduced,' Geng, a resident of Qingdao city, said. Police officers in many other regions have also seen significant cuts to their annual salaries, down to 200,000 yuan (US$27,856) this year from 300,000 yuan (US$41,784) a year ago, said a legal professional based in southeast China's Guangdong province. Employees of major Chinese state-owned commercial enterprises, such as investment bank CICC and China Development Bank, have not been spared either, with companies executing cost-cutting 'optimization measures,' including wage reductions and layoffs, amid a government campaign to cap pay ceilings at financial institutions and bring it more on par with other civil servants But an employee at CICC said the salary cuts have affected virtually all staff levels. 'Almost everyone in our building has had their salaries cut. The lowest-level employees have also had their salaries cut by 5%. I heard that the reductions for mid- and high-paid employees are even greater,' he said. According to a report from Beijing-based Caixin media group, 27 government-owned financial enterprises have begun to implement salary cuts, mainly aimed at reaching the goal of capping annual income of staff at these firms at 1 million yuan (US$139,180), as Beijing moves forward with a campaign, known as 'common prosperity' drive, to narrow income and wealth inequality. Ma, who works at a Beijing-based state-owned enterprise, said his company has already conducted two rounds of salary cuts and layoffs since 2023. 'The basic salary has shrunk, and the company has also cancelled meal and transportation subsidies,' Ma said. 'The work that used to be done by two or three people now has to be done by one person.' Another employee of a state-owned bank based in Guangdong's Dongguan city said his salary had been reduced by 30% in the past two years, with performance bonuses 'almost completely cut.' The salary reductions have sparked a sharp decline in consumer spending, creating deflationary pressures across the economy, as businesses engage in aggressive price cutting in a desperate bid to attract cash-strapped consumers. 'The price war has become the latest struggle for many small businesses,' Meng, a Shandong resident, told RFA. 'For example, the good ribs here only sell for 12 yuan (or US$1.67) a pound, and the purchase price of live pigs is only a few yuan … restaurants are desperately offering discounts to survive. This is not competition, but dragging each other down.' In Beijing, small supermarkets are 'slashing prices like crazy,' said Su, a resident of the city's Haidian District. 'I'm afraid they will all go bankrupt in a few months at this rate.' In her own home too, Su has observed major changes in spending patterns, with fewer family gatherings and less frequent restaurant meals, as household budgets tighten. Economist Wu Qinxue warned that the current situation highlights continued decline in local governments' fiscal levels and is not just a temporary belt-tightening. 'The (local) government has no money to manage people, and no one is willing to spend money,' he said. 'From salary cuts within the system to the collapse of consumption among ordinary people, the entire society is quietly forming a top-down (consumer belt-) 'tightening chain.''
Forbes
2 hours ago
- Forbes
IRS Can And Does Assess This 100% Tax Penalty—Over And Over Again
Employees, Payroll Binder data finance report business with graph analysis in office. getty For anyone with employees, paying employment taxes is inevitable. You withhold taxes from employee pay, then send the money to the IRS. The taxes are withheld from wages and are supposed to be promptly paid to the government. This is trust fund money that belongs to the government, and no matter how good a reason the employer has for using the money for something else, the IRS is strict. If you are in business, it can be tempting to figure that you have to keep the rent paid and the supplies ordered, and that the IRS won't miss the payroll tax money if you just divert it temporarily. You never want to become delinquent in paying taxes, especially employment taxes. The IRS is vigorous in going after these payroll taxes. It is one reason that in cases where the IRS catches the problem early, the IRS may encourage use of a payroll service. If the payroll service automatically takes out and remits all the payroll taxes, the business won't have the discretion to divert the money, even briefly. When a tax shortfall occurs, the IRS will usually make personal assessments against all responsible persons who have ownership in or signature authority over the company and its payables. The IRS can assess a Trust Fund Recovery Assessment, also known as a 100-percent penalty, against every 'responsible person" under Section 6672(a). You can be liable even if have no knowledge the IRS is not being paid. If you're a responsible person, the IRS can pursue you personally if the company fails to pay. The 100% penalty equals the taxes not collected. The penalty can be assessed against multiple responsible persons, allowing the IRS to pursue them all to see who coughs up the money first. "Responsible" means officers, directors, and anyone who makes decisions about who to pay or has check signing authority. When multiple owners and signatories all face tax bills, they generally do their best to direct the IRS to someone else. Factual nuances matter in this kind of mud-wrestling, but so do legal maneuvering and just plain savvy. One responsible person may get stuck, while another may pay nothing. Meanwhile, the government will still try to collect from the company that withheld on the wages. And those IRS collection efforts can be serious. The IRS can move to collect, too, including via a levy on your bank accounts. But before a levy can be issued the IRS must provide notice and an opportunity for an administrative Collection Due Process hearing. A Collection Due Process hearing is only available for certain serious IRS collection notices. Among other things, it allows you the opportunity to ask for an installment agreement, an offer in compromise or another collection alternative. The IRS also looks for situations where one company owing payroll taxes seems to morph into a 'new' company, and there are special rules in the case of a 'predecessor' employer. That is, some procedural safeguards won't apply if you are a predecessor employer. Here's what the IRS evaluates to determine if one business is a predecessor of another: Does it have substantially the same owners and officers? Are the same individuals actively involved in running the business, regardless of whether they are officially listed as the owners/shareholders/officers? If the taxpayer's owners or shareholders are different, is there evidence they acquired the business in an arm's-length transaction for fair market value? Does the business provide substantially the same products, services, or functions as the prior business? Does the business have substantially the same customers as the prior business? Does the business have substantially the same assets as the prior business? Does the business have the same location/telephone number/fax number, etc. as the prior business? See IRC Section 6330(h). A business won't be treated as a predecessor if there was a genuine change in control and ownership, as where the business was acquired in an arm's-length transaction for fair market value, where the previous owners have ceased all involvement. The IRS's guidance lists examples of predecessor status and explains how to determine if a business requesting a Collection Due Process hearing for employment taxes is a 'predecessor.' There's no right to a Collection Due Process hearing to resolve the employment tax liabilities if you already had your chance.
