August 5, 2021

MP Now News

Mortgage News

Texas wedding planner bought Teslas, paid off mortgage with $1M PPP loan

Photo by Jay R. Jordan

The prosecution finally caught up with him.

The prosecution finally caught up with him.

Jamie Grill / Getty Images / Tetra Images RF

A Texas wedding planner bought two Teslas and paid off his expensive mortgage using $ 1 million fraudulent Paycheck Protection Program loans, federal prosecutors said.

Fahad Shah, 44, admitted in court Wednesday that he illegally applied for two PPP loans from a separate lender totaling $ 3.2 million. His wedding planning business, Weddings by Farah, employed 126 people with $ 600,000 monthly payroll.

FORGE THE ALAMO: Does Phil Collins have a huge collection of fake Alamo artifacts?

Only two people actually work for Farah’s weddings, prosecutors said.

But before the authorities caught up with Shah, he had already received $ 1.5 million from a lender and went on a shopping spree within days.

He immediately spent over $ 1 million to repay his mortgage and buy two Teslas, two Freightliner trucks, and a Mercedes-Benz van.

“PPP loans should help companies keep themselves and their employees afloat during the COVID-19 pandemic,” said incumbent US attorney Nicholas Ganjei. “PPP loans were and were not intended to be personal loans for personal use.”

Shah is in federal prison up to 20 years ago.