Connecticut Accountant Admits Guilt in $2.3 Million COVID Fraud

# Connecticut Accountant Pleads Guilty to $2.3 Million COVID Relief Fraud

This one’s a jaw-dropper. A Connecticut accountant just admitted to running a multi-million dollar scam that took advantage of government relief meant for businesses hit hard by the pandemic.

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Yasir Hamed, a 60-year-old from Woodbridge, pleaded guilty to defrauding the Paycheck Protection Program (PPP) out of $2.3 million. He did it through a string of fake applications for both himself and his clients, exposing some big cracks in the relief system set up during the COVID-19 chaos.

Details of the COVID Relief Fraud Scheme

Hamed’s scheme stretched from June 2020 to September 2021. That was right in the thick of things, when businesses across Connecticut were scrambling to survive.

He entered his guilty plea in Bridgeport federal court, skipping the whole indictment process by waiving his rights. That’s not something you see every day.

Fraudulent Application Methods

Prosecutors said Hamed used a handful of shady tactics. He routinely overstated employee numbers and payroll totals for several New Haven businesses he owned or represented.

He also sent in fake tax filings to back up those inflated numbers. That gave his applications a veneer of credibility, at least on paper.

But it didn’t stop there. Hamed filed fraudulent PPP applications for clients’ businesses in places like Stamford, Hartford, and Waterbury.

These companies weren’t even operating—they had zero employees. Still, their names padded the fraud total and spread the scam across several Connecticut towns.

Financial Impact and Personal Gain

The money involved here? It’s no small potatoes. Hamed personally pocketed over $1 million from the $2.3 million he stole.

He didn’t just line his own pockets, either. He set up a kickback system with clients whose fake applications he handled, so the profits kept flowing.

How the Stolen Funds Were Used

Instead of using the relief money to keep businesses running or pay workers, Hamed spent it on himself. Some examples?

A hefty down payment on an $880,000 house

Tuition for a family member

Other personal expenses that had nothing to do with business

It’s tough not to wonder how many legitimate businesses in places like Danbury, New Britain, and Greenwich lost out on desperately needed help because of this.

Legal Consequences and Upcoming Sentencing

Authorities arrested Hamed in November 2024, then released him on a $500,000 bond. As part of his plea, he agreed to pay back $2,384,772 in restitution—the whole amount he stole from the government.

Folks in Milford and nearby areas will be watching when he’s sentenced on August 8, 2025. He’s up against charges of bank fraud and illegal monetary transactions, and let’s just say, the prison time could be hefty.

Broader Implications for Connecticut

This case stands out as just one of several PPP fraud investigations in Connecticut. It really shows how the emergency program’s verification systems struggled under pressure.

Federal authorities are still digging into similar cases across the state. The true scale of pandemic relief fraud is still surfacing, bit by bit.

For small business owners in Connecticut who played by the rules and applied honestly during tough times, cases like Hamed’s sting a little. They remind everyone why program integrity and solid oversight matter so much when handing out emergency financial help.

Here is the source article for this story: Connecticut accountant pleads guilty to defrauding $2.3 million in COVID relief scheme

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