Indian-Origin Accountant Jailed for 41 Months 'US COVID Relief Fraud'

An Indian-origin man in the US has been sentenced to 41 months in federal prison for fraudulent acquisition of pandemic-era relief funds and laundering cash derived from drug trafficking. 

Arun Mago, an accountant, was sentenced on Wednesday by US District Judge Robert Pitman in Austin following his conviction on charges of bank fraud and money laundering. 

The court also ordered Mago to pay over USD 900,000 in



restitution and imposed a USD 250,000 fine.

According to court records, Mago laundered USD 150,000 in cash derived from cocaine distribution between October 2023 and July 2024. 

Alongside these illicit transfers, Mago orchestrated a loan fraud scheme during the COVID-19 pandemic, receiving nearly USD 1 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) across several business entities