Hamden Man, Restaurant Owner, Sentenced In COVID-19 Fraud Case: Feds

HAMDEN, CT — A Hamden man has been sentenced to 15 months in federal prison in connection with defrauding COVID-19 pandemic relief programs of more than $750,000, according to officials.

Omar Rajeh, 57, was also sentenced Thursday to two years of supervised release following the prison term, U.S. Attorney for Connecticut David X. Sullivan announced.

According to court documents and statements made in court, Rajeh maintained an ownership or management interest in a New Haven restaurant, Mediterranea LLC, and a hookah lounge, M. Café Inc.

“Rajeh previously operated his restaurant under the name Al Amir LLC, but that entity was dissolved in 2018,” officials wrote in a news release. “Al Amir LLC was reregistered with the State of Connecticut in July 2020 in order to apply for pandemic loan funding.”

Officials said that between June 2020 and May 2021, Al Amir LLC, Mediterranea LLC, and M. Café Inc., sought and received approximately $1,057,244 in Paycheck Protection Program (PPP) and Economic Injury Disaster Loans funding.

“Rajeh’s accountant, Yasir Hamed, prepared financial filings for his various entities and was involved in the preparation of fraudulent paperwork to obtain the funding,” officials wrote in the news release. “The loan applications fraudulently misrepresented that Al Amir LLC was in operation in February 2020; included false employee, monthly payroll, and business revenue information; included copies of false IRS forms; and contained other false information.

“Rajeh used a majority of the funds for personal and family expenses, some of which he sent overseas; to purchase a property in North Haven; and for general business expenses. He also kicked back approximately 10 percent of the loan funding he received to Hamed.”

Rajeh has agreed to pay $758,279 in restitution, which officials said “reflects the amount he acknowledged knowing was obtained by fraud.”

“The government has agreed not to pursue the return of $298,965 in PPP funds that Rajeh received for his true restaurant business,” according to officials.

Rajeh pleaded guilty on Dec. 20, 2023 to one count of wire fraud and one count of engaging in illegal monetary transactions. He is required to report to prison on Oct. 1, according to officials.

Hamed pleaded guilty in May to related charges and is awaiting sentencing.

Anyone with information about allegations of fraud involving COVID-19 is encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form here.