A trucking ownership couple has been convicted and sentenced in a COVID fraud scheme.
According to a news release, on Feb. 23, the U.S. District Court for the Southern District of Ohio convicted and sentenced Ajay Chawla and his wife Ruhi Chawla, owners or associates of Prime Transportation and Logistics, Inc., for their roles in a COVID-19 relief program fraud scheme.
The court sentenced Ajay Chawla to three years of probation, six months of home detention, and a $100 special assessment. The court sentenced Ruhi Chawla to two years of probation and a $100 special assessment. The court also ordered both to pay $900,028 in joint and several restitution.
On Feb. 23, the Chawlas pleaded guilty to wire fraud.
The investigation revealed that from March 2020 until June 2021, the Chawlas submitted fraudulent applications for Payroll Protection Plan (PPP) loans and Economic Injury Disaster Loans (EIDLs) in the name of Federal Motor Carrier Safety Administration (FMCSA) regulated companies, which they owned and operated. On the applications, the Chawlas falsely reported the number of employees, the gross revenues, and income.
Additionally, the Chawlas provided FMCSA with false information to reincarnate into another motor carrier company, allowing them to falsely obtain multiple loans. Collectively, the Chawlas received at least four PPP loans and three EIDL loans totaling $900,928. On July 27, 2020, the Chawlas used $150,000 from the loans to purchase real estate, which was not an allowable use of EIDL proceeds.
Bruce Guthrie is an award-winning journalist who has lived in three states including Arkansas, Missouri and Georgia. During his nearly 20-year career, Bruce has served as managing editor and sports editor for numerous publications. He and his wife, Dana, who is also a journalist, are based in Carrollton, Georgia.
