WAXHAW, N.C. — A Waxhaw, North Carolina, father and his son are facing federal charges in connection to allegedly fraudulently securing more than $1.7 million in Paycheck Protection Program loans.
The U.S. Attorney's Office said in a newly unsealed indictment that 55-year-old Izzat Freitekh and his 33-year-old son Tarik Freitekh are charged with one count of conspiracy to commit wire fraud and one count of bank fraud. Prosecutors said Izzat is also charged with one count of false statements.
Tarik's last known residence was in Glendale, California.
According to prosecutors, the indictment accuses the two of submitting fraudulent PPP loan applications on behalf of three companies: La Shish Kabob Restaurant in Charlotte and La Shish Catering, Green Apple Catering LLC and Aroma Packaging Systems.
The U.S. Attorney's Office said Izzat told law enforcement a company called “Kyber Capital” was responsible for the PPP loan applications in question.
According to prosecutors, law enforcement recovered $1.3 million of the more than $1.7 million in PPP funds.
The PPP allowed for small businesses and other types of organizations to qualify to receive loans with a 1% interest rate.
Businesses have to use the PPP loan proceeds toward its payroll costs, mortgage interest, rent and/or utilities. The PPP also allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.