Eight Bangladeshis Plead Guilty in NY COVID Fraud

Nine individuals have pleaded guilty to defrauding New York State’s COVID-19 relief fund, which was established to support small businesses during the pandemic. Of the nine defendants, eight are of Bangladeshi origin, while one is of Pakistani descent.

The defendants appeared before Queens Supreme Court between May 2025 and February 2026 to enter their guilty pleas. Following the proceedings, the court imposed a total restitution of $1,091,720. To date, the defendants have repaid $760,000, with the remainder scheduled for payment under court supervision.

Queens District Attorney Melinda Katz and New York State Inspector General Lucy Lang jointly confirmed the details in a statement issued on 13 February. While the authorities have released the names and addresses of the defendants, no photographs have been made public.

The defendants are:

According to official investigations, the defendants filed multiple fraudulent applications under the “Empire State Development Pandemic Small Business Recovery Grant Program” from June 2020 onwards. The grant applications claimed that government funds would be used for payroll, office rent, utility bills, and equipment purchases.

However, audits conducted by the New York State Inspector General’s Office revealed that, immediately after receiving the funds, the majority of the money was transferred into the defendants’ personal bank accounts. Examination of banking records and tax documents confirmed that the businesses named in the applications had no prior commercial activity.

Queens District Attorney Melinda Katz commented, “Misappropriating funds allocated to struggling businesses during an unprecedented pandemic is a grave offence. Through these guilty pleas, the defendants are now legally bound to make restitution.”

Inspector General Lucy Lang added, “Using emergency relief funds for personal gain constitutes a crime and violates public trust.”

The investigation began in May 2024 under the Inspector General’s Office and was later transferred to the Queens District Attorney’s Office. Defendants voluntarily surrendered between 6–9 May 2025 and February 2026.

One defendant, Zakir Chowdhury, told the media, “I could have gone to trial, but it would have taken three years and damaged my reputation. My former business partner, Khokon Ashraf, used my company’s name to secure funds and took half of the money. I am now complying with the court’s settlement orders.”

Khokon Ashraf also confirmed that he was the first to repay $70,000, adding that the matter has now been resolved.

This case highlights the ongoing need for vigilance and accountability in the distribution of public funds during crises.