NEW YORK (WPIX) – A health care provider in New York was sentenced to 51 months in jail Friday after he fraudulently obtained greater than $3 million in COVID emergency loans, officers mentioned.
Dr. Konstantinos Zarkadas used the cash to purchase a $1.7 million yacht, lease luxurious vehicles and get Rolex and Cartier wristwatches, in accordance with U.S. Legal professional’s Workplace for the Jap District of New York. He pleaded responsible in November 2021 to catastrophe reduction fraud and wire fraud in connection together with his receipt of small enterprise loans beneath the Paycheck Safety Program and Financial Harm Catastrophe Mortgage Program.
“At present’s sentence demonstrates there are penalties for individuals who deal with important authorities applications as money give-a-ways and shamefully search to revenue from an unprecedented public well being disaster,” United States Legal professional Breon Peace mentioned in a Friday press launch. “This Workplace will vigorously prosecute and produce to justice medical professionals just like the defendant and different fraudsters who’re pushed by greed to take care of a lavish way of life on the expense of small companies in official want of COVID-19 emergency help.”
Zarkadas, 48, fraudulently utilized for and obtained a minimum of 11 loans between March and July of 2020, officers mentioned. He then laundered the cash and used it for “extravagant private purchases,” together with an almost $200,000 down cost on a yacht.
“Because of the investigative work of IRS-CI and the FBI, he’ll sail straight to federal jail as a substitute of onboard his $1.7 million yacht that was illegally bought with CARES Act funds,” mentioned Thomas Fattorusso, Jr., Particular Agent-in-Cost of IRS Prison Investigation (IRS-CI) of New York.
Along with his 51-month sentence, Zarkadas has been ordered to pay roughly $3.5 million in restitution.