Eight Bangladeshis plead guilty in New York disaster relief fund fraud case

Noman Sabit: Nine defendants have pleaded guilty to charges of embezzling thousands of dollars from a disaster relief fund allocated to support small businesses affected during the COVID-19 pandemic. Among them, eight are reported to be Bangladeshi and one Pakistani.

As part of their plea agreements, they have been ordered to repay more than $1 million in restitution. The information was confirmed by the offices of Queens District Attorney Melinda Katz and New York State Inspector General Lucy Lang.

District Attorney Katz stated that the nine defendants admitted to stealing thousands of dollars from New York State funds that were specifically allocated to help struggling businesses survive during the unprecedented COVID-19 crisis.

“These funds were critical to helping New Yorkers stay afloat during an extraordinary emergency,” Katz said. “As a result of their guilty pleas, they must now repay that money. I thank my office’s Frauds Bureau and the New York State Inspector General’s Office for holding them accountable.”

Inspector General Lucy Lang said that misusing disaster relief funds for personal gain is always criminal and shameful, but especially reprehensible during a global health crisis.

“Today’s guilty pleas and the recovery of over one million dollars for taxpayers reflect the dedication of my office, District Attorney Katz and her team, and our law enforcement partners,” Lang said. “New York will not tolerate greed placed above the public good.”

Charges and Restitution

Between May 2025 and February 2026, the defendants pleaded guilty in Queens Supreme Court to fourth-degree grand larceny and petit larceny charges.

They were ordered to pay a total of $1,091,720 in restitution. Of that amount, approximately $760,000 has already been repaid to New York State.

According to DA Katz, the investigation revealed that beginning in June 2020, the defendants submitted multiple fraudulent applications under New York State’s Empire Development Pandemic Small Business Recovery Grant Program.

In each application, they claimed the funds were needed to cover payroll, commercial rent or mortgage payments, utility bills, and other business expenses. However, investigators found that most of the grant money was quickly transferred into their personal bank accounts.

A review of extensive banking records showed that the businesses listed in the applications had no legitimate operational activity prior to receiving the grants. Additionally, there was no supporting evidence of the income or expenses reported in the submitted tax returns.

The New York State Office of the Inspector General initially launched the investigation into the alleged misuse of funds and transferred the case to the Queens District Attorney’s Office in May 2024.

After being notified of the charges, the defendants surrendered separately to the Queens District Attorney’s Office between May 6 and May 9, 2025.

The investigation was conducted jointly by the Queens District Attorney’s Office and the New York State Office of the Inspector General, with assistance from a specialized unit of the New York Police Department.

Defendants Who Pleaded Guilty

The individuals who entered guilty pleas include: Mahbub Malik (41), Astoria, Queens, Tufail Ahmed (50), Jamaica, Queens, Yusuf Md (45), Elmhurst, Queens, Mohammad Chowdhury a.k.a. Khokon Ashraf (68), Jackson Heights, Queens, Nadeem Sheikh (56), New Hyde Park, Nassau County, Zakir Chowdhury (59), Jamaica, Queens, Mohammad Khan (49), Jamaica Hills, Queens, Tanvir Milan (55), Farmingdale, Nassau County and Junaid Khan (56), Suffolk County

The case underscores continued enforcement efforts against fraud involving pandemic relief funds intended to support vulnerable small businesses during the COVID-19 crisis.

*Copyright 2026 Bangla Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

BP/SM