KANSAS CITY, Mo. — A former Overland Park business owner pleaded guilty Monday in U.S. District Court to fraud related to COVID-19 CARES Act funding.
Mirza M. Reazuddin, 66, pleaded guilty to one count of wire fraud and one count of money laundering for falsifying an application and documents to receive more than $800,000 in federal pandemic-relief money.
Federal authorities indicted Reazuddin, who now resides in Georgia, in April 2023 on four counts of wire fraud and seven counts of money laundering after receiving two rounds of money from the Paycheck Protection Program for a hotel that had closed in 2018.
Reazuddin was a partner for Grandview Hotel LLC from 2013 to 2018 when another company took over the operations. The hotel closed in 2021.
Despite the Grandview Hotel’s closure, Reazuddin applied for and received $384,100 of PPP funding in June 2020 and another $420,000 in January 2021 using phony documents and statements.
He’s been ordered to repay $804,100 in restitution and faces up to 30 years in federal prison without parole.
Reazuddin will be sentenced at a later date.
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