Madison Man Sentenced to 42 Months for CARES Law and Access Device Fraud | USAO-WDWI
MADISON, SWITZERLAND. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Ahmad Kanan, 49, of Madison, Wisconsin, was convicted yesterday in two separate cases of fraudulent fraud. the Coronavirus Aid, Relief and Economic Security Act (CARES). and access device fraud. Kanan was sentenced by US District Judge William M. Conley to 42 months in federal prison and ordered to pay restitution in the amount of $ 147,060.
Kanan committed the CARES Law fraud while indicted and awaiting trial in the Access Device Fraud case. He pleaded guilty to both cases on October 2, 2020.
While acting on behalf of Altin Labs, Inc. as CEO and majority owner, Kanan applied for two Paycheck Protection Program (PPP) loans funded by the CARES Act. Specifically, in April 2020, Kanan applied for a PPP loan of $ 72,500 through the Bank of Kaukauna in Kaukauna, Wisconsin. The Bank of Kaukauna noted an error in the spelling of Kanan’s name in the application, and Altin Labs did not receive these funds. In May 2020, Kanan again applied for a PPP loan, requesting $ 47,060 through the Cross River Bank located in New Jersey. This time, Altin Labs received the funds. In his PPP requests, Kanan used a false spelling of his name and indicated that he was not indicted on criminal charges, when in fact he was the subject of an indictment. rendered by a federal grand jury in the Western District of Wisconsin in October 2019, charging him with access device fraud.
The separate access device charge was for two family-owned gas stations Kanan operated in Janesville, Wisconsin. Kanan admitted to using the routing and account numbers of the Libyan Embassy military attaché’s bank account to pay the Wisconsin Department of Revenue a sales and use tax, penalties and interest owed by its gas stations for an amount of $ 83,783.41 in July 2017, and $ 108,053.02 in December 2017. The Libyan Embassy did not allow Kanan to use his bank account to make these payments.
The charges against Kanan are the result of investigations conducted by the Homeland Security Investigations of the US Immigration and Customs Enforcement and the Criminal Investigations Division of the Wisconsin Department of Justice, with assistance from the Wisconsin Department of Revenue , the US Department of State and the Small Business Administration. The US Prosecutor’s Office would like to thank the Libyan Embassy for its cooperation.
Assistant U.S. prosecutors Zachary Corey and Meredith Duchemin handled the prosecution.