NEWARK, N.J. — A Bergen County man was indicted today for allegedly fraudulently obtaining hundreds of thousands of dollars in COVID-19 relief funds, U.S. Attorney Philip R. Sellinger announced. Malak Faltawws, also known as “Mark Andrews,” 47, of Rutherford, New Jersey, faces charges of three counts of wire fraud and two counts of money laundering.
Faltawws made his initial appearance before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was released on a $100,000 unsecured bond.
According to court documents, Faltawws engaged in a scheme from March 2020 through November 2021 to fraudulently obtain Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) funds. These funds were intended to support small businesses impacted by the COVID-19 pandemic. Faltawws allegedly submitted false applications that exaggerated his businesses’ revenue, payroll expenses, and the number of employees. After securing the funds through these fraudulent claims, he allegedly diverted the money for personal use.
Each wire fraud charge carries a maximum penalty of 20 years in prison, while each money laundering charge carries a maximum penalty of 10 years in prison. Additionally, each charge could result in a fine of up to $250,000 or twice the gross gain or loss, whichever is greater.
The investigation was conducted by special agents from IRS – Criminal Investigations, under the leadership of Special Agent in Charge Jenifer L. Piovesan, and investigators from the Port Authority of New York and New Jersey, Office of the Inspector General, led by Inspector General John Gay.
The case is being prosecuted by Assistant U.S. Attorney Aja Espinosa of the Economic Crimes Unit in Newark.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force, part of a national initiative by the U.S. Department of Justice, played a key role in the investigation. The strike force is dedicated to investigating and prosecuting large-scale pandemic relief fraud and focuses on multi-state fraud operations.