Illinois Man Sentenced to 10 Years for $14M COVID-19 Loan Fraud
An Illinois man has been sentenced to 10 years in federal prison for his role in a $14 million COVID-19 loan fraud scheme. Sharhabeel Shreiteh, aged 46, submitted over 1,500 fraudulent loan applications during the height of the pandemic, significantly abusing the Paycheck Protection Program (PPP).
Long Sentence for COVID-19 Loan Fraud
The sentence handed to Shreiteh on Tuesday marked one of the longest for a PPP-related fraud case in U.S. District Court in Chicago. U.S. District Judge Martha Pacold delivered the 120-month term, which exceeded the defense’s requested sentence by more than three times. After the sentence was announced, Shreiteh was visibly emotional, burying his face in his hands.
Details of the Fraud Scheme
According to prosecutors, Shreiteh operated as a tax preparer and exploited the COVID-19 relief program by filing false applications on behalf of at least 1,025 clients. Between 2020 and 2021, he orchestrated the distribution of approximately $14 million in PPP loans, many of which were later forgiven by the U.S. government. For this fraudulent activity, Shreiteh received around $740,000 in kickbacks.
- Location: Crete, Illinois
- Number of Fraudulent Applications: Over 1,500
- Total Amount Defrauded: $14 million
- Kickbacks Received: Approximately $740,000
Personal Consequences
Shreiteh reportedly spent the illicit funds on luxury items, including expensive vacations and home renovations. Furthermore, he sent significant amounts of money to his second wife in Palestine, where he built a luxury home and purchased a luxury car.
Emotional exchanges regarding his spending were highlighted during the trial. Shreiteh’s American wife expressed frustration over his expenditures, stating, “I bust my ass for 13 years and don’t have like she gets without working for it!” This demonstrates the personal impact of his fraudulent actions.
Ongoing Legal Issues
Shreiteh’s troubles do not end with this sentencing. He faces a related tax fraud case and has a pending co-defendant, Tracy Mitchell, whose charges are still forthcoming. As the situation unfolds, it sheds light on the severe repercussions of exploiting financial relief programs during a national crisis.
