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Maryland Man Receives 41-Month Prison Sentence for $2 Million COVID-19 Relief Fraud
NEWARK, NJ - Fraudulent Pandemic Loan Scheme Lands Maryland Resident in Federal Prison
In Newark, New Jersey, a significant legal development unfolded as Mohamed Kamara, a 43-year-old Maryland resident, faced a 41-month prison sentence for defrauding COVID-19 relief programs. U.S. District Judge Esther Salas handed down the sentence after Kamara pleaded guilty to wire fraud and conspiracy charges, according to U.S. Attorney Philip R. Sellinger.
Kamara's conviction stems from his involvement in a scheme to exploit Economic Injury Disaster Loans (EIDL) offered by the Small Business Administration (SBA). From March to October 2020, he and co-conspirators submitted fraudulent applications using stolen identities, leading to over $750,000 in wrongful disbursements. Moreover, Kamara exploited unemployment insurance in New Jersey and six other states, fraudulently obtaining over $1 million.
"The defendant was sentenced today for submitting falsified applications to the government to obtain business loans to which he was not entitled. These relief programs were set up to provide financial help to Americans who were struggling to cope with the COVID-19 pandemic," remarked U.S. Attorney Sellinger. He emphasized the serious consequences of such fraud, especially during a crisis.
FBI – Newark's Special Agent in Charge, James E. Dennehy, highlighted the persistence of criminal activities during crises, warning others against assuming anonymity in such large-scale frauds.
"Kamara admitted he lied when applying for federal loans meant for struggling business owners who were forced to close their doors during the height of the pandemic. Fraudsters should stop assuming with so much red tape, and so much money being offered that they won't get caught. We found Kamara, and we'll continue to find others who thought the same thing," Dennehy stated.
In addition to the prison term, Judge Salas ordered a three-year supervised release for Kamara. The investigation, led by the FBI and the U.S. Department of Labor's Office of Inspector General, reflects a collaborative effort involving multiple agencies, including the FBI Baltimore Field Office, the SBA, and the New Jersey Department of Labor & Workforce Development.
This case was prosecuted by Assistant U.S. Attorney Andrew Kogan of the Cybercrime Unit in Newark and is part of a broader initiative by the U.S. Department of Justice. The District of New Jersey COVID-19 Fraud Enforcement Strike Force, one of five nationwide, aims to combat pandemic-related fraud through interagency collaboration and data-driven strategies.
