The COVID-19 pandemic not only tested the resilience of individuals and businesses worldwide but also resulted in many cases of alleged fraudulent use of pandemic relief funds.
EIDL Loan Fraud in the News
Donald Nchamukong, a Michigan man, was accused of fraudulently obtaining pandemic relief funds to finance an illegal pharmaceutical operation. Federal authorities have charged Nchamukong with conspiracy to smuggle goods into the United States, commit loan fraud, and distribute controlled substances. He agreed to plead guilty to these charges and is set to appear in a Boston federal court.
According to court documents, from 2019 to 2022, Nchamukong and his co-conspirator, Doyal Kalita, operated an online drug distribution network. Using shell companies—one posing as a dietary supplements provider and another as an auto parts supplier—they allegedly processed and sold illegal foreign pharmaceuticals, including tramadol, a Schedule IV opioid. They also allegedly used call-centers in India to facilitate sales and orchestrated shipments of drugs to customers across the United States.
Nchamukong and Kalita are accused of obtaining a $200,000 COVID-19 Economic Injury Disaster Loan under false pretenses, using the money to sustain their illegal drug operation instead of aiding a struggling business. Kalita, who was convicted in 2024, received a 10-year prison sentence for his role in the drug distribution scheme, and a technical fraud support scheme and related money laundering.
Conspiracy Charges
Under federal law, a conspiracy charge does not require the crime itself to be completed—only an agreement and an overt act in furtherance of the illegal objective. This makes conspiracy a powerful tool for prosecutors.
Alleged financial crimes tied to COVID-19 relief programs are often complex crimes with multiple charges alleging a sophisticated operation, and the use of fraudulently obtained funds for a variety of unauthorized activities, from personal luxuries to criminal enterprises. The U.S. Department of Justice launched the COVID-19 Fraud Enforcement Task Force in May 2021 to investigate and aggressively prosecute pandemic-related fraud.
Individuals facing serious COVID-19 relief fraud accusations should seek highly experienced and knowledgeable representation. At Dhar Law LLP, our experienced COVID-19 relief fraud defense attorneys have defended many serious cases including PPP Loan Fraud and other complex financial crimes. If you or someone you know is facing COVID-19 relief fraud accusations, contact a member of our dedicated team to find out how we can protect your rights and build a robust case to counter the prosecution’s allegations.
