Washington tech govt pleads responsible to wire fraud, cash laundering

A Washington state tech executive pleaded guilty to wired fraud and money laundering after attempting to obtain $ 5.5 million Paycheck Protection Program Loans and to wash part of the proceeds, said federal prosecutors.

Clyde Hill’s Mukund Mohan was charged in July 2020 and agreed to plead on Monday, incumbent U.S. attorney Tessa Gorman said in a statement. He is due to be sentenced on July 20th.

Mohan filed at least eight fake PPP loan applications for six different companies with federally insured financial institutions, according to the defense agreement and court files. He made false and misleading statements about the companies in support of the bogus applications.

He received about $ 1.7 million, but investigators were able to quickly seize all but about $ 16,000.

In one case, he said his company Mahenjo Inc. had dozens of employees and paid millions of dollars in wages and income taxes in 2019 when he actually bought the company in 2020 and had no workers or business.

As part of the plea agreement, prosecutors will recommend the lower end of the range of federal sentencing guidelines, Gorman said. Both the government and defense will recommend Mohan pay a $ 100,000 fine in addition to being refunded.

Wire fraud is punishable by up to 20 years in prison. Money laundering is punishable by up to 10 years in prison.