Former Warren County Businessman Sentenced to Three Years in Prison for Fraudulently Obtaining $1.8 Million in COVID-19 Loans Meant for Small Businesses
NEWARK, N.J. – A Philadelphia man today admitted orchestrating a $2 million PPE fraud scheme, Acting U.S. Attorney Rachael A. Honig announced.
Guaravjit Singh, 26, pleaded guilty by videoconference before U.S. District Court Judge Peter G. Sheridan to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
Beginning in May 2020, in the midst of the COVID-19 pandemic, Singh engaged in a scheme to enrich himself by fraudulently inducing 10 victims to send him over $2 million to obtain personal protective equipment (PPE). He stole the money, spending it on personal expenses, and he did not provide the promised PPE to the victims.
For instance, Singh induced victims to enter into an agreement pursuant to which Singh would be paid approximately $7.1 million in exchange for approximately 1.5 million medical gowns, which ultimately were to be sourced to the City of New York. Under the terms of the agreement, the victims wired Singh, though his company GJS Solutions LLC, approximately $712,500, representing a 10 percent deposit for the medical gowns. After receiving these funds from the victims, Singh made additional misrepresentations and excuses to the victims, ensuring them that they would receive the medical gowns. Instead of purchasing and delivering medical gowns, Singh used the funds for personal expenses, including transferring funds to his brokerage account and using the funds for online gaming and other personal expenditures.
The count of wire fraud is punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Feb. 10, 2022.
Acting U.S. Attorney Honig credited special agents and intelligence analysts of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the Economic Crimes Unit in Newark.