May 26, 2022

A New York doctor will spend time behind bars after being sentenced for spending millions of dollars obtained through fraudulently obtained small business loans during the pandemic in an effort to live a luxury lifestyle.

Long Island resident Konstantinos Zarkadas, who had a Nassau County practice in Glen Cove, was sentenced in federal court to 51 months in prison for fraudulently obtaining millions of dollars in COVID-19 emergency relief funds.

In addition to his prison term, Zarkadas was also ordered to pay approximately $3.5 million in restitution after pleading guilty in November 2021 to disaster relief fraud and wire fraud in connection with his receipt of small business loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDLP).

Zarkadas also forfeited $200,000 and four luxury wristwatches, US Attorney Breon Peace noted.

“It’s a shame to see rampant abuse of programs designed to help ordinary people struggling through the pandemic. Zarkadas chose greed over honesty by financing a luxury lifestyle on the backs of America’s taxpayers,” IRS-CI Special Agent-in-Charge Thomas Fattorusso said.

“Thanks to the investigative work of IRS-CI and the FBI, he’ll sail straight to federal prison instead of onboard his $1.7 million yacht that was illegally purchased with CARES Act funds.”

As part of his guilty plea, Zarkadas admitted to fraudulently applying for at least 11 PPP and EIDLP loans…

Read more…

Leave a Reply

Your email address will not be published.