A Massachusetts business owner is facing serious charges after being indicted for allegedly committing fraud in securing over $18 million in Paycheck Protection Program (PPP) loans. Durgaprasad Rao, a 65-year-old from Carlisle, is accused of using deceitful measures to obtain the federal aid intended to help businesses during the COVID-19 pandemic.
The indictment includes four counts of wire fraud and three counts of money laundering, following Rao's arrest in May 2024, according to the U.S. Attorney's Office, District of Massachusetts. Rao, who owns Accelerated Engineering, LLC. and Upstream Global Services, Inc. purportedly submitted several false PPP loan applications between April 2020, and May 2021, for various companies he owned in Massachusetts, Wisconsin, and Georgia.
Rao's fraudulent behavior extends beyond the submission process to the misuse of funds. Alleged actions include transferring funds to foreign businesses he owned, and buying luxury real estate in New York City. His PPP loan applications reportedly contained fabricated information about employee payroll and falsified tax and payroll documents. Remarkably, Rao managed to have one loan for over $1.5 million forgiven.
These charges could lead to significant penalties, with each count of wire fraud providing for a sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $250,000. The money laundering counts are similarly grave, potentially resulting in 10 years in prison, three years of supervised release, and hefty fines either up to $250,000 or twice the amount laundered, whichever is greater.
The announcement of the indictment was made by Acting United States Attorney Joshua S. Levy, alongside agents from the IRS, U.S. Postal Inspection Service, and Carlisle Police Chief Andrew Amendola. Assistant U.S. Attorneys Brian Sullivan and David Tobin of the Major Crimes Unit are handling the prosecution.
In response to the widespread fraud exploiting COVID-19 relief programs, the Department of Justice established the COVID-19 Fraud Enforcement Task Force in May 2021 to help prevent and prosecute pandemic-related crimes. Information on this initiative and resources for reporting suspected fraud can be found at their official websites.
