COVID-19 Relief Fraud: Centennial Man Sentenced To Federal Prison

CENTENNIAL, CO — A Centennial man was sentenced Wednesday to two and a half years in federal prison for wire fraud after he received Paycheck Protection Program loans for fake businesses and unemployment insurance for ineligible family members, the U.S. Attorney's Office for Colorado said.

Anthony Zaghab, 52, submitted in April 2020 false Economic Injury Disaster Loan and PPP applications to the Small Business Administration and to a bank, and received $666,630, the attorney's office said.

He also applied for and received $41,511 in Pandemic Unemployment Insurance payments from the state for ineligible family members without their knowledge, according to the plea agreement. He then kept the funds for himself, officials said.

"Pandemic-relief funds were supposed to be used to save small businesses and to support individuals devastated by COVID-19," said Cole Finegan, U.S. attorney, in a statement.

"Together with our law enforcement partners, we are holding criminals accountable for stealing from the generosity of the American taxpayer."

In addition to his sentence, Zaghab was ordered to pay $708,141 in restitution.

"This prison sentence and restitution order should serve as a strong deterrent against COVID-19 related fraud," said Marc DellaSala, an agent with the U.S. Secret Service Denver Field Office.

"We will vigorously pursue anyone stealing from government aid programs intended for struggling small businesses and families. I want to thank the U.S. Attorney's Office and our pandemic fraud task force partners for their continued dedication to protecting America's financial infrastructure."