Source: United States Department of Justice (National Center for Disaster Fraud)
David X. Sullivan, United States Attorney for the District of Connecticut, announced that David X. Sullivan, United States Attorney for the District of Connecticut, announced that OMAR RAJEH, 57, of Hamden, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 15 months of imprisonment, followed by two years of supervised release, for defrauding COVID-19 pandemic relief programs of more than $750,000. Judge Underhill also ordered Rajeh to pay a $2,000 fine.
According to court documents and statements made in court, in March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act provided emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program (“PPP”). The PPP was overseen by the U.S. Small Business Administration (“SBA”), and individual PPP loans were issued by private lenders, which received and processed PPP applications and supporting documentation, and then made loans using the lenders’ own funds, which were guaranteed by the SBA. A second source of relief provided by the CARES Act was the distribution of Economic Injury Disaster Loans (“EIDLs”), through the SBA, which provided working capital to eligible small businesses to meet operating expenses.
Rajeh maintained an ownership or management interest in a New Haven restaurant, Mediterranea LLC, and a hookah lounge, M. Café Inc. Rajeh previously operated his restaurant under the name Al Amir LLC, but that entity was dissolved in 2018. Al Amir LLC was reregistered with the State of Connecticut in July 2020 in order to apply for pandemic loan funding.
Between June 2020 and May 2021, Al Amir LLC, Mediterranea LLC, and M. Café Inc., sought and received approximately $1,057,244 in PPP and EIDL funding. Rajeh’s accountant, Yasir Hamed, prepared financial filings for his various entities and was involved in the preparation of fraudulent paperwork to obtain the funding. The loan applications fraudulently misrepresented that Al Amir LLC was in operation in February 2020; included false employee, monthly payroll, and business revenue information; included copies of false IRS forms; and contained other false information.
Rajeh used a majority of the funds for personal and family expenses, some of which he sent overseas; to purchase a property in North Haven; and for general business expenses. He also kicked back approximately 10 percent of the loan funding he received to Hamed.
Rajeh has agreed to pay $758,279 in restitution, which reflects the amount he acknowledged knowing was obtained by fraud. The government has agreed not to pursue the return of $298,965 in PPP funds that Rajeh received for his true restaurant business.
On December 20, 2023, Rajeh pleaded guilty to one count of wire fraud and one count of engaging in illegal monetary transactions. He is required to report to prison on October 1.
On May 9, 2025, Hamed pleaded guilty to related charges. He awaits sentencing.
This investigation has been conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Individuals with information about allegations of fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.