3 Long Islanders among 9 who stole $2.2M of COVID relief funds, Queens DA says

Queens prosecutors charged nine people, including three Long Island men, with stealing COVID-19 relief funds through claims for fraudulent businesses, totaling more than $2.2 million.

Prosecutors said the defendants applied to the state's $800 million COVID-19 Pandemic Small Business Recovery Grant Program beginning in June 2020. Five of the recipients — including a Farmingdale man accused of taking $2.5 million — also are charged with stealing funds from the U.S. Small Business Administration’s COVID-19 Economic Injury Disaster Loan program.

The grant requests were submitted on behalf of newly created or defunct businesses, claiming the emergency relief funds were needed to cover payroll or rent and mortgage payments, according to the Queens district attorney’s office.

The defendants are accused of using the relief grants for personal use and transferring the money into their bank accounts after submitting multiple grant applications. Authorities said funding was also wired to other defendants to cover legal costs of the grant applications.

The alleged fraud was uncovered following an investigation by the New York State inspector general in May 2024 and referred to the NYPD and the Queens district attorney. Queens District Attorney Melinda Katz said her office would seek restitution with the charges.

"The COVID-19 pandemic caused great hardship for small business owners and their employees," Katz said in a statement. "These defendants are accused of intentionally exploiting the state and federal disaster relief programs through a multitude of fraudulent companies and lining their pockets with the proceeds."

Long Islanders charged in the emergency relief theft were Tanvir Milon, 50, of Farmingdale, Juned Khan, 52, of Deer Park, and Nadeem Sheikh, 52, of New Hyde Park. They each pleaded not guilty during separate court appearances last week in Queens.

Milon was charged with grand larceny, criminal possession of stolen property and seven counts of falsifying business records.

Prosecutors said Milon is accused of stealing $2.5 million in Small Business Administration loans and grants and also receiving $208,512 from New York's Empire State Development, which administered the $800 million program, after submitting applications for nine fraudulent businesses.

Milon could face up to 25 years in prison if convicted of the top charges. His attorney did not return calls seeking comment.

Khan was charged with two counts of grand larceny and two counts of criminal possession of stolen property. Prosecutors said Khan filed eight applications seeking relief for different fraudulent businesses, for which he received about $72,000 in Economic Injury Disaster Loans from the U.S. Small Business Administration. He also is charged with stealing an estimated $127,300 from Empire State Development. If convicted, he could face up to 15 years in prison, prosecutors said. His attorney declined to comment.

 S heikh was charged with grand larceny, two counts of criminal possession of stolen property and two counts of falsifying business records. Prosecutors said he was accused of stealing $98,208 from the state through two fake businesses. If convicted, he could face up to 15 years in prison. His attorney could not be reached for comment.

Queens prosecutors also charged Tufail Ahmed, 45, of Jamaica, Yousef MD, 40, of Elmhurst; Mohammed Chowdhury, 64, of Jackson Heights; Mahbub Malik, 37, of Astoria; Mohammad Khan, 43, of Jamaica Hills; and Zakir Chowdhury, 55, of Jamaica.

They each pleaded not guilty last week to various counts of grand larceny, possession of stolen property and falsifying business records.

By John Asbury

john.asbury@newsday.comJohnAsbury

John Asbury is a breaking news and general assignment reporter. He has been with Newsday since 2014 and previously worked at The Press-Enterprise in Riverside, California.