Mukund Mohan: Former Microsoft Director Pleads Guilty to US Wire Fraud | India Business News

BENGALURU: Former Microsoft companies director and angel investor Mukund Mohan pleaded guilty to electronic fraud and money laundering regarding his scheme to obtain more than $ 5.5 million in Paycheque Protection Program (PPP) and product laundering, the Acting U.S. Attorney General for the Western District of Washington said in a press release on Monday.
The PPP provides loans to small businesses to retain workers during the pandemic.
Mohan is due to be sentenced before a U.S. District Judge on July 20. Under the terms of the plea deal, prosecutors will recommend the lower end of federal sentencing guidelines.
“The prosecution and defense will recommend that Mohan pay a fine of $ 100,000 on top of his restitution obligation,” he said.
Electronic fraud is punishable by up to 20 years in prison. Money laundering is punishable by up to 10 years in prison. Swift action by federal law enforcement resulted in the seizure of almost $ 16,000 in federal loan funds from Mohan’s accounts.
Last year, Mohan was accused by the U.S. Attorney’s Office of fraudulently requesting more than $ 5.5 million in coronavirus relief funds.
TOI then reported that Mohan had requested eight loans from six of his companies under the PPP. The complaint alleged that Mohan did not employ any people in these companies and that some did not even have a business.
One of the companies he requested a loan from was called Mahenjo. The complaint alleges that Mohan made numerous false and misleading statements about itself, including that on February 15, 2020, the company was in operation and had employees for whom it was paying salaries and payroll taxes or paying independent contractors; that in 2019, his salary costs amounted to more than $ 2.3 million; and that Mahenjo’s average monthly salary expense was at least $ 172,250.
“In truth, Mohan bought Mahenjo over the internet in May 2020, and at the time he bought the company, she had no employees and no business activity. The incorporation documents he submitted to the lender were amended and the federal income tax returns he submitted were false, ”the statement said.
Mohan studied computer science at the University of Mysore and became director of engineering at Microsoft in the United States before becoming an entrepreneur. Six years ago, he was an angel investor with a portfolio of 35 companies, including 27 in Silicon Valley.
Mohan became a popular face in the Bengaluru startup ecosystem when he moved from the United States in 2008, first to start his own business and then to lead Microsoft’s startup accelerator program that had just started. to be founded. He returned to the United States with a new role at Microsoft in 2014. He left Microsoft in 2015.

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