A New York City real estate developer has been indicted for allegedly defrauding federal pandemic relief programs of more than $8 million. David Ebrahimzadeh, 45, was arrested and is set to appear in federal court in Massachusetts following charges brought by a Boston grand jury.
According to the indictment, Ebrahimzadeh ran Corniche Capital, LLC as a holding company for various limited liability companies involved in commercial real estate transactions and leasing. Prosecutors allege that under Small Business Administration rules, these businesses were not eligible for Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans, or loans from the Federal Reserve Bank of Boston’s Main Street Lending Program.
Authorities claim that after the onset of the COVID-19 pandemic, Ebrahimzadeh applied for and received loans from each of these programs using false information. The charging documents state he provided fraudulent revenue and payroll data, misrepresented his debts and liabilities to lenders, and sought loans for companies that had been dissolved before the pandemic began. Prosecutors further allege that he used some of the funds on luxury items, personal and business debt payments, and to purchase a home on Long Island. After acquiring this property, it is alleged that Ebrahimzadeh and a family member obtained another relief loan to buy a second Long Island residence.
The indictment also claims that in 2021 Ebrahimzadeh fraudulently sought forgiveness for a PPP loan by falsely stating he had paid employees during 2020. As part of this alleged scheme, he reportedly filed tax returns with incorrect expense deductions for 2019 and approximately $600,000 in wage expenses for 2020.
In total, prosecutors say Ebrahimzadeh secured about $8.5 million through these means.
If convicted on all counts—bank fraud; wire fraud affecting a financial institution; wire fraud; and procuring false tax returns—Ebrahimzadeh faces significant penalties. The most serious charges carry potential sentences of up to 30 years in prison each, along with supervised release periods and fines reaching either $1 million or twice the amount gained or lost from the offenses.
The announcement was made by United States Attorney Leah B. Foley; Brian Tucker of the Board of Governors of the Federal Reserve System’s Office of Inspector General; Ted E. Docks from the FBI’s Boston Division; Thomas Demeo from IRS Criminal Investigations in Boston; with assistance from the Special Inspector General for Pandemic Recovery. Assistant U.S. Attorneys Kriss Basil and Elianna Nuzum are prosecuting.
“The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.”
