New York COVID Relief Fund Fraud: Eight Bangladeshis

In a significant case of pandemic-era financial misconduct, nine individuals have pleaded guilty to defrauding New York State’s COVID-19 relief funds intended for small businesses. Among them, eight are of Bangladeshi descent and one is of Pakistani origin.

The guilty pleas were entered at the Queens Supreme Court between May 2025 and February 2026. Following the pleas, the court imposed fines and restitution totalling $1,091,720. To date, the defendants have repaid $760,000.

Queens District Attorney Melinda Katz and New York State Inspector General Lucy Lang released a joint statement on 13 February, confirming the details of the case.

Defendants’ Names, Ages, and Nationality

Investigations revealed that beginning June 2020, the defendants submitted applications under the Empire State Development Pandemic Small Business Recovery Grant Program using fraudulent business entities. Applicants claimed funds would be used for employee salaries, office rent, utility bills, and equipment purchases.

However, audits by the New York State Inspector General’s office showed that most of the funds were transferred directly to the defendants’ personal bank accounts. Bank and tax records confirmed that the entities had no prior business operations before receiving the grants.

Queens District Attorney Katz stated, “Stealing funds meant to support businesses during an unprecedented public health crisis is a serious offence. Through these guilty pleas, the defendants are now held accountable and are providing restitution.”

Inspector General Lang added, “Using disaster relief funds for personal gain is a crime against the public interest and undermines trust in government aid programmes.”

The investigation was launched in May 2024 by the Inspector General’s office and subsequently handed over to the Queens District Attorney. The defendants surrendered between 6–9 May 2025 and February 2026.

Zakir Chowdhury, a Bangladeshi-American defendant, told the media that he chose settlement over trial to avoid prolonged proceedings and reputational damage. He explained that a former business partner, Khokon Ashraf, had orchestrated the misuse of his office’s name to obtain grants during the pandemic, ultimately requiring him to pay fines despite his legitimate operations.

Another defendant, Mohammad Chowdhury (Khokon Ashraf), confirmed he promptly paid $70,000 following court orders, stating the matter has now been resolved.

This case underscores the vigilance of New York authorities in safeguarding public funds and ensuring accountability in the administration of emergency relief programmes.