Long Island man Sandeep Grover has been sentenced to up to 18 months in federal prison for embezzling nearly $12 million in COVID-19 relief funds, funneling the pandemic aid meant for businesses straight into his own pockets. Alongside his prison sentence, 56-year-old Grover must also repay between $2.2 million and $3.8 million, pay a $250,000 fine, and surrender assets purchased with the stolen money, including a Suffolk County residence.
Grover admitted guilt in March to orchestrating a large-scale fraud against the U.S. government and conspiring to commit wire fraud. He was taken into custody in 2023 in connection with the scheme and had been facing the possibility of more than 12 years behind bars, according to court records. “He clearly understands that he committed a crime, now learning his lesson the hardest way, is no threat to commit further crimes,” as per the court paper cited by Long Island Press.
Grover ran a Seaford-based tax preparation company called Excellent Business Services. According to court records, his fraudulent scheme spanned from April 2020 to June 2021. He ran a scheme that took more than $13 million in Paycheck Protection Program (PPP) loans, using the money for his own businesses and fake clients of his company. He also faces a charge of aggravated identity theft for allegedly using an employee’s personal information on a loan application without their permission.
The Massapequa man filed or helped file loan applications at seven banks for over 100 companies, but instead of helping businesses, he used the funds for his own purposes, leaving legitimate business owners out of the aid they needed. Court records show that Grover bought a Shirley home for $325,000, using part of the money he stole through his fraudulent scheme.
In a related case, Grover’s former employee, Abhijeet Singh, was also sentenced Monday. Singh avoided prison time and was instead handed three years of probation. Reports from the courthouse note that more than 35 people, including elected officials such as state Sens. Jack Martins and Steven Rhoads, and U.S. Rep. Tom Suozzi, submitted letters in support of Grover.
On Aug. 25, it was reported that federal prosecutors charged two Long Island residents in a COVID-19 relief loan fraud scheme that allegedly netted them more than $13 million. Sandeep Grover, 54, of Massapequa, and Shikha Sehgal, 43, of Deer Park, were each accused of major fraud against the United States, as well as conspiracy to commit wire and bank fraud. Authorities said the duo submitted 100 loan applications with false information to seven different banks, aiming to secure government-backed funds meant for small businesses during the pandemic.
Prosecutors had said the major fraud charge could carry up to 10 years in prison, while the conspiracy to commit wire and bank fraud carries a potential sentence of up to 30 years. They added that the loan applications falsely claimed that each company had multiple employees and spent tens of thousands of dollars on monthly payroll. In reality, the companies had not reported any wages to the Social Security Administration (SSA) during that period. Authorities allege that Grover then used the fraudulently obtained funds to buy property, pay off personal debts, and cover expenses for other businesses he controlled.
As stated by prosecutors, Grover allegedly “recruited” Sehgal and others to help him “open bank accounts for companies that did no business, create fake invoices and other supporting documentation, and submit fraudulent applications for numerous PPP loans.”
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A Newsday review of federal court records found that at least 31 people from Nassau and Suffolk counties were arrested for defrauding the government’s key pandemic business-relief programs. The cases show that more than $98 million was improperly taken from the Paycheck Protection Program, COVID-19 Economic Injury Disaster Loans, and three tax-credit programs between 2020 and 2023. Grover is one of at least 31 Long Islanders accused of defrauding pandemic relief programs, including the PPP, COVID-19 Economic Injury Disaster Loans, the Employee Retention Credit, and other tax incentives, according to the review.
Grover’s lawyer, Vinoo P. Varghese, argued that his client should avoid prison because he has already repaid $3.7 million in full restitution to the U.S. Small Business Administration, which managed the PPP. Grover has also agreed to forfeit $11.9 million, including the sale of his Shirley home and another property in Preston Hollow, upstate. Varghese noted that Grover, who came to the U.S. from India in 2001, faces possible deportation. Over 35 people, including state Sens. Jack Martins (R-Old Westbury) and Steven D. Rhoads (R-Bellmore), as well as Rep. Thomas R. Suozzi (D-Glen Cove), submitted letters in his support, highlighting his charitable contributions to the Indian American community in the New York area.