Portland man pleads guilty to using bogus business in COVID relief scheme, prosecutors say – OregonLive
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A Portland man pleaded guilty Tuesday in federal court to bilking nearly $900,000 in COVID-19 relief funds, prosecutors say.
Benjamin Tifekchian, 47, received an $884,246 Paycheck Protection Program loan in June 2020 after falsely claiming that his jewelry business employed 78 people and had a monthly payroll above $350,000, according to court documents.
In reality, Tifekchian employed no one and had never generated more than $500 in revenue over the course of a year, court records show. The business, Bencho Jewlery, was incorporated in 2019 but doesn’t appear to have operated commercially.
Bank of America discovered the fraud and froze Tifekchian’s account after he had spent $68,000 on “gambling, vacations, and other personal expenses,” according to the U.S. Attorney’s Office.
A federal grand jury indicted Tifekchian in July on one count apiece of bank and wire fraud, but the wire fraud charge was later dropped as part of a plea deal.
While bank fraud carries a maximum sentence of 30 years in prison, federal prosecutors noted Tifekchian’s “acceptance of responsibility” and recommended he be sentenced to at least 21 months in prison, with the possibility of being released early for good behavior, and an additional five years of supervised release, according to court records.
A federal judge could ignore the recommendation and impose a different sentence at Tifekchian’s April 18 sentencing hearing.
Tifekchian agreed to give up $815,700 in unspent loan funds that have already been seized. He also agreed to pay back the money he spent and $26,500 in loan fees from the U.S. Small Business Administration, according to court records.
A U.S. Attorney’s Office spokesperson said Tifekchian is one of 10 Oregonians who have been charged in COVID-19 relief fraud schemes.
— Zane Sparling; zsparling@oregonian.com; 503-319-7083; @pdxzane
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