A Utah man has been sentenced to two years in federal prison for his role in a scheme that defrauded federal and state programs out of nearly $393,000 during the COVID-19 pandemic. Mubarak Sulaiman Ukashat, 38, of Kaysville, Utah, received a 24-month sentence after pleading guilty to failure to file currency and other monetary instruments reports earlier this year.
Ukashat was also ordered by a U.S. District Court Judge to serve three years of supervised release following his prison term. He must pay $392,827 in restitution and has agreed to forfeit an additional $101,000.
Court documents and statements made during Ukashat’s plea and sentencing hearings revealed that between June and July 2020 he obtained about $333,900 in Economic Injury Disaster Loans (EIDL) through fraudulent applications submitted to the U.S. Small Business Association. He used the names of four individuals with whom he had no connection and directed the funds into the Utah State University Student Association Muslim Student Club bank account at America First Credit Union, over which he had control.
The investigation found that Ukashat later transferred these funds into another account held jointly with a relative before using them for personal expenses. He also fraudulently secured nearly $59,000 in state unemployment insurance benefits for which he was not eligible.
According to prosecutors, Ukashat spent the illicit proceeds on items including a GMC Yukon valued at $45,900; electronics worth $27,000; paying off a car loan with $21,000; making debt payments totaling $20,000; putting down $10,000 as earnest money toward purchasing a house; and spending about $5,200 on college expenses. More than $100,000 was transferred overseas to countries such as Nigeria and Dubai.
“Acting U.S. Attorney Felice John Viti of the District of Utah made the announcement.”
The case was investigated by IRS-Criminal Investigation (IRS-CI). Assistant United States Attorneys Todd Bouton and Mark Y. Hirata prosecuted the case.
