NJ Man Indicted in Fraudulent COVID-19 Relief Scheme

Bergen County Man Charged in COVID-19 Fraud Scheme.Photo byMorristown Minute

Rutherford resident faces wire fraud and money laundering charges in scheme involving hundreds of thousands of dollars in pandemic relief funds.

RUTHERFOD, N.J. - A Bergen County man has been indicted on charges of fraudulently obtaining hundreds of thousands of dollars in COVID-19 relief funds, U.S. Attorney Philip R. Sellinger announced today. Malak Faltawws, also known as “Mark Andrews,” 47, of Rutherford, New Jersey, faces three counts of wire fraud and two counts of money laundering related to his alleged involvement in a scheme to secure Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) funds under false pretenses.

Faltawws made his initial appearance before U.S. Magistrate Judge André M. Espinosa in Newark federal court, where he was released on a $100,000 unsecured bond.

Details of the Case:

Between March 2020 and November 2021, Faltawws allegedly submitted fraudulent applications for COVID-19 emergency relief funds, inflating the revenue, payroll expenses, and number of employees of his businesses to secure EIDL and PPP funds. Authorities allege that after receiving these funds, intended to support distressed small businesses during the pandemic, Faltawws diverted the money for personal use.

Each wire fraud charge carries a maximum penalty of 20 years in prison, while each money laundering charge carries a maximum penalty of 10 years in prison. Additionally, each charge is accompanied by a potential fine of $250,000 or twice the gross gain or loss associated with the crime, whichever is greater.

Investigation and Prosecution:

Special agents of the IRS conducted the investigation - Criminal Investigations, under the direction of Special Agent in Charge Jenifer L. Piovesan, and investigators from the Port Authority of New York and New Jersey’s Office of the Inspector General, led by Inspector General John Gay. The government’s case is being handled by Assistant U.S. Attorney Aja Espinosa of the Economic Crimes Unit in Newark.

COVID-19 Fraud Enforcement:

This case is part of the District of New Jersey COVID-19 Fraud Enforcement Strike Force, one of five strike forces established nationwide by the U.S. Department of Justice to combat large-scale pandemic relief fraud. These strike forces, which are interagency efforts, focus on identifying and prosecuting criminal organizations and individuals who have exploited pandemic relief programs.

Anyone with information regarding attempted COVID-19 fraud can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or submitting information via the NCDF Web Form.

The charges against Malak Faltawws are allegations, and he is presumed innocent until proven guilty in a court of law.

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