CHICAGO – A tax preparer from Palos Heights is accused of helping clients obtain millions of dollars in loans under the Coronavirus Aid, Relief and Economic Security Act. Hadi Isbaih, 39, is charged with four counts of electronic fraud.
Isbaih is owned and operated Flash Tax Service Inc. a tax and investment advisory firm on 87th Street and Harlem Avenue in Bridgeview. According to the federal prosecution, Isbaih introduced hundreds of Flash Tax customers PPP and EIDI counterfeit applications about customers’ businesses, such as gross revenue, expenses and number of employees. Through their false statements and misrepresentations, the feds claim that Isbaih has secured millions of dollars in fraudulent PPP and EIDL loans and concessions to Flash Tax customers.
The prosecution further claimed that Osbaih charged customers several hundred dollars before sending the fraudulent orders on behalf of his customers. If customers received PPP or EIDL funds based on applications, Isbaih charged customers an additional fee of $ 1,000, the feds said.
“These programs were developed to help small business owners survive the devastation caused by the COVID-19 pandemic,” said FBI SAC Buie in a press release. “It is a pity that someone thought of taking advantage of these programs.”
The charge was returned on Monday in the Northern Illinois District. Isbaih appeared before the judge of the US magistrate, Beth W. Jantz. If convicted, each charge of electronic fraud is punishable by up to 20 years in federal prison.
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