Former Atlantic City Housing Authority Employee Pleads Guilty to COVID-19 Relief Fraud

Federal prosecutors allege the defendant falsely obtained more than $30,000 through pandemic-related SBA programs.

ATLANTIC CITY, NJ – A former coordinator at the Atlantic City Housing Authority and Urban Redevelopment Agency admitted to fraudulently acquiring tens of thousands of dollars in federal COVID-19 relief funds, Acting U.S. Attorney Vikas Khanna announced. Luquay Zahir, 50, of Atlantic City, pleaded guilty before U.S. District Judge Karen M. Williams to two counts: making false statements to influence the U.S. Small Business Administration (SBA) and wire fraud.

According to court documents and statements made in court:

In 2020 and 2021, Zahir, then the Ross Family Service Coordinator for the Atlantic City Housing Authority and Urban Redevelopment Agency, fraudulently obtained more than $30,000 through a Paycheck Protection Program loan and Economic Injury Disaster Loan advance issued under the Coronavirus Aid, Relief, and Economic Security Act.

Investigators say Zahir sought and secured these funds by submitting misleading and inaccurate information about his eligibility and the nature of his business.

- Making false statements to influence the SBA: Maximum potential penalty of two years in prison and a $250,000 fine.

- Wire fraud: Maximum potential penalty of 20 years in prison and a $250,000 fine.

Zahir awaits sentencing as the judicial process continues.

Acting U.S. Attorney Khanna credited special agents of the FBI, Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Brian J. Driscoll; and special agents of SBA Office of Inspector General’s Eastern Region, under the direction of Special Agent in Charge Amaleka McCall-Braithwaite, with the investigation leading to the guilty plea.

The government’s case is being prosecuted by Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Branch Office, in collaboration with the Special Prosecutions Division in Newark.

Local officials emphasize that the misuse of COVID-19 relief programs can undermine resources intended for legitimate businesses and individuals struggling during economic hardships. As of this time, the Atlantic City Housing Authority has not commented publicly on the matter.