FLORENCE, S.C. (WBTW) –Three people facing charges in a federal investigation of pandemic fraud are set to enter guilty pleas in U.S. District Court in Florence, according to a spokesman for the U.S. Attorney’s Office.
Spokesman Derek Shoemake said Mohammad Ribhi Farraj, Nariman Mahmoud Masoud and Marvet Masoud will be entering guilty pleas on Dec. 8.
Farraj and Masoud, his wife, are accused of stealing more than $500,000. They previously pleaded not guilty to financial crimes related to pandemic fraud, identity theft and money laundering.
Farraj is the owner of Lakeside Financial Group, Inc., a business registered in Florida, according to court documents. The couple intended to “fraudulently enrich themselves by filing and receiving fraudulent claims” and receive pandemic benefits in South Carolina, Florida and New York by using other people’s identities. The funds were received mostly by prepaid debit cards.
Authorities have alleged that the couple obtained people’s identification without their knowledge or consent, submitted false claims using that information and then used debit cards with pandemic funds loaded onto them to withdraw money from ATMs, according to the documents. They then used the proceeds to continue the scheme.
Marvet Masoud’s involvement in the investigation remains unclear.