A California man is accused of using money from COVID-19 loans to purchase a $1.2 million “investment property” in Eagle Rock, a nearly $600,000 property in Malibu and a “personal residence” in Irvine.

A California man is accused of utilizing money from COVID-19 financial loans to acquire a $1.2 million “investment property” in Eagle Rock, a nearly $600,000 home in Malibu and a “personal residence” in Irvine.


A California man has agreed to plead guilty following federal prosecutors mentioned he obtained extra than $5 million in COVID-19 aid financial loans for shell providers.

The Orange County resident, Raghavender Reddy Budamala, 35, applied 3 sham organizations to use for 7 Paycheck Safety Software and Economic Injury Disaster financial loans, in accordance to the plea arrangement. He agreed on June 3 to plead guilty to a depend of money laundering and a rely of lender fraud.

Budamala’s attorney, Diane C. Bass, informed McClatchy Information she experienced no comment on the situation.

The Paycheck Defense Method and COVID-19 Economic Injury Disaster loans were being made available by way of the Compact Small business Administration in the months just after the pandemic commenced to assist corporations navigate mandated shutdowns and quarantines. The loans experienced nominal curiosity and ended up forgivable, so lengthy as the resources had been made use of on particular expenses, like rent or payroll.

Budamala ultimately gained 6 loans, totaling $5,151,497, according to the plea settlement He is accused of making use of the cash to purchase a $1.2 million “investment property” in Eagle Rock, a almost $600,000 residence in Malibu and a “personal residence” in Irvine.

In addition, Budamala deposited approximately $3 million into a private account, in accordance to a information release from the U.S. Attorney’s Business office for the Central District of California.

The Orange County resident also applied for financial loan forgiveness on quite a few of the loans, professing to have used the funds from the SBA entirely on payroll, the launch reported.

Budamala is in federal custody just after remaining arrested on Feb. 23, when he tried using to flee the state to Mexico, the release said. He faces a maximum 40-year jail sentence.

Budamala is between a growing selection of folks staying billed with receiving COVID-19 aid loans underneath fraudulent instances, according to a launch from the Office of Justice. The lawyer typical designed the COVID-19 Fraud Enforcement Endeavor Pressure a very little around a yr back.

“Across the section, together with the Prison Division’s Fraud Area and U.S. Attorneys’ Offices, approximately 500 defendants have been charged in in excess of 340 circumstances with alleged supposed losses of above $700 million,” the launch reported.

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