Atlantic City Housing Authority Coordinator Arrested on COVID-19 Relief Fraud Charges

Luquay Zahir faces allegations of false statements and wire fraud.

NEW JERSEY – Luquay Zahir, a 49-year-old Atlantic City resident and former coordinator for a local housing authority program, was arrested today under charges of fraudulently obtaining COVID-19 relief funds, as announced by U.S. Attorney Philip R. Sellinger.

Zahir, previously affiliated with the Atlantic City Housing Authority and Urban Redevelopment Agency, is accused of making false statements to the U.S. Small Business Administration (SBA) and committing wire fraud to secure over $30,000 in federal aid. The funds were obtained through the Paycheck Protection Program loan and Economic Injury Disaster Loan advance under the Coronavirus Aid, Relief, and Economic Security Act during 2020 and 2021.

He was charged by complaint with one count each of making false statements and wire fraud and made his initial court appearance this afternoon before U.S. Magistrate Judge Elizabeth A. Pascal in Camden federal court. Zahir was released on a $100,000 unsecured bond.

The charges carry severe penalties, with making false statements potentially resulting in up to two years in prison and a $250,000 fine, and wire fraud carrying a maximum penalty of 20 years in prison and a $250,000 fine.

The arrest was the culmination of an investigation by the FBI Newark Atlantic City Resident Agency and the SBA Office of Inspector General’s Eastern Region. Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Branch Office, represents the government in this case.

These charges and allegations are merely accusations, and Zahir is presumed innocent unless and until proven guilty.