Wedding planner pleads guilty to using PPP loans for personal expenses, including purchase of Teslas

A Murphy man pleaded guilty Wednesday to fraudulently using $1.5 million in Paycheck Protection Program (PPP) loans for personal use.

Prosecutors say 44-year-old Fahad Shah applied for two of these loans for his wedding planning company, Weddings By Farah. According to an indictment obtained by Star Local Media, the defendant submitted a loan application to a bank in April 2020 in which he falsely claimed that his company paid an average of $701,550 a month to 126 employees.

Authorities claim Weddings By Farah only had two employees.

While the bank denied this $1.7 million loan, another bank approved a $1.5 million loan the following month.

Once the bank sent Shah the money via wire transfer, he reportedly used the money to pay his mortgage, make personal investments and purchase luxury vehicles, including two Teslas and a Mercedes Benz van.

Documents claim he also purchased a 3D printer.

“PPP loans were intended to help businesses keep themselves and their employees afloat during the COVID-19 pandemic,” said U.S. Attorney Nicholas J. Ganjei in a press release. “PPP loans were not, and never were, intended to serve as personal loans for personal use. By applying and qualifying for PPP funds on fraudulent grounds, Fahad Shah took advantage of the COVID-19 economic crisis to enrich himself and his family. By seeking a loan that he should not have received, Shah helped to deplete the amount of funds available to all potential legitimate borrowers who really needed financial support. This plea shows that the Eastern District of Texas is dedicated to pursuing fraudsters and ensuring they do not benefit from their crimes.”

Shah pleaded guilty to three counts of wire fraud, making him subject to a maximum prison sentence of 20 years.

This article originally ran on starlocalmedia.com.