Ohio Man Convicted of $1.2M in Pandemic Benefits Fraud Sentenced to 11 Years in Prison

CLEVELAND – A Portage County man who orchestrated a financial conspiracy to defraud the U.S. government in the wake of the COVID-19 pandemic has been sentenced to prison.

Mustafa Ayoub Diab, 42, of Ravenna, Ohio, was sentenced to 132 months (11 years) in prison by U.S. District Judge Solomon Oliver Jr., after a federal jury found him guilty in March on 12 counts of theft of government funds, 12 counts of bank fraud, 11 counts of wire fraud, 6 counts of aggravated identity theft, and 1 count each of conspiracy to commit wire and bank fraud and to launder monetary instruments. Diab was also ordered to serve five years of supervised release after imprisonment and to pay $1,213,860 in restitution. Judge Oliver imposed the sentence Dec. 1.

According to court documents, Diab owned and operated a tax return preparation business in Akron, Ohio, along with co-conspirator, Elizabeth Lorraine Robinson, 34, also of Ravenna. From around June 2020 to August 2021, Diab submitted fraudulent applications for pandemic unemployment benefits and small business assistance for many of his business clients. Without their knowledge, he lied about their employment and their status as small business owners on applications to qualify for pandemic funds and benefits such as the Pandemic Unemployment Assistance Program and the Paycheck Protection Program.

When the pandemic relief funds were deposited into bank accounts that he opened and controlled for his clients without their knowledge, he immediately withdrew the funds in cash for his personal use. Diab bought real estate, cars and took international trips. Among the evidence presented at the nearly week-long trial, were fraudulent applications that he submitted using the names of nearly 80 victims. These applications caused the federal government to pay out more than $1.2 million in pandemic benefits that were deposited into the various bank accounts that Diab controlled.

Co-defendant Robinson previously pleaded guilty to her role in the conspiracy and was sentenced to nine months in prison and ordered to serve three years of supervised release thereafter. She was also ordered to pay $183,450 in restitution both joint and severally with Diab.

The investigation preceding the indictment was conducted by the FBI Akron Field Office.

The prosecution in this case was led by Assistant United States Attorneys Vanessa V. Healy and Brenna L. Fasko.