Baltimore County Man Sentenced for Conspiring to Scam Nearly $18 Million COVID Loan Fraud

A Baltimore County man responsible for a “once-in-a-century” COVID-19 scheme loan fraud conspiracy, the largest such scam in Maryland history, was sentenced Tuesday for his role as leading the wire scam network routing money from the United States with some funds ending up in Egypt.

U.S. District Judge Richard D. Bennett sentenced Ahmed Sary to seven years in a minimum-security men's prison, followed by three years of supervised release for conspiracy to commit wire fraud after Sary pocketed 17 $.9 million in ill-gotten proceeds, which were used to purchase property. in Egypt and pay for Sary's stays in luxury hotels in Egypt and Dubai.

Sary's sentence, slightly lower than the upper end of the range agreed between his lawyer and prosecutors, also includes a year of house arrest.

“Sary will now pay the price for her luxurious life thanks to stolen COVID-19 pandemic relief funds that others needed to keep a business open or to keep a roof over their heads,” said U.S. Attorney Erek L. Barron in a press release.

Bennett, during the sentencing hearing, said Sary's crime was “beyond painful” and called the fraud “outrageous,” especially given Sary's status as a naturalized U.S. citizen .

Bennett ordered Sary to report to prison in late September. The federal judge emphasized during Tuesday's hearing that Sary is the only one who can help the U.S. government recover some of its lost funds, and that Sary's prison sentence could be reduced if he helps find the money lost.

“You know how to find that money if you choose to do so,” Bennett told Sary directly.

The federal judge repeatedly asked the lawyer and Sary himself where the money had gone, and questioned why a man with no criminal history would engage in this criminal behavior.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. Financial assistance provided through the CARES Act included loans to small businesses for job retention and other expenses.

The Small Business Administration administered the Paycheck Protection Program and Economic Injury Disaster Loans to help businesses meet their financial obligations. An EIDL advance did not have to be repaid, and small businesses could receive an advance even if they were not approved for an EIDL loan.

For two years, beginning in April 2020, Sary and his co-conspirators prepared false and fraudulent PPP and EIDL loan applications for a number of borrowers in exchange for a “kickback” typically ranging from 20 to 30 percent of the loan amount, Paul Riley testified at Tuesday’s hearing.

Riley, representing the U.S. government, said Sary admitted to using proceeds from the fraud to purchase property in Egypt, including a beachfront restaurant, and to stay at the Four Seasons hotel for weeks.

Sary encouraged borrowers to establish a “false paper trail,” Riley said, which ultimately led directly to Sary.

During the sentencing hearing, Riley highlighted Sary's background that sets him apart from other defendants, including the fact that Sary has a high school diploma, attended college in Egypt, and has a loving family.

Julia Reamy, Sary's attorney, argued Tuesday that her client had financial problems starting in 2016 that only increased when Sary's father died in 2018 and her mother died in 2021. Sary is father of five, and his supporters and family said he connected their family, bridging different religions and cultures.

His two sons and his wife, originally from Poland, expressed their support before Sary addressed the court.

“I’m sorry for putting myself in this position,” Sary said, adding that he was “tremendously remorseful” for his actions.

Sary pleaded guilty to the charge in October 2023.

Bennett ordered restitution of $17.9 million, at $250 per month, or until Sary can provide information on the whereabouts of the money. The government is also considering placing a lien on Sary's Brooklyn Park home, valued at $325,000.