Houston | October 30, 2026 : An Indian-origin accountant, Arun Mago, has been sentenced to 41 months in federal prison in the United States for fraudulently obtaining COVID-19 relief funds and laundering money derived from drug trafficking, according to court records.
⚖️ Court-imposed penalties:
- 🏛️ 41 months in federal prison
- 💰 More than $900,000 in restitution
- 💵 A $250,000 fine
📑 What the case involved:
According to the report, Mago obtained nearly $1 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) through multiple business entities during the COVID-19 pandemic. The funds were allegedly diverted from legitimate business purposes into personal bank accounts and used for real estate purchases.
Investigators also found that he laundered $150,000 in cash linked to cocaine distribution between October 2023 and July 2024.
🔎 Investigation and sentencing:
US District Judge Robert Pitman handed down the sentence in Austin, Texas, following Mago’s guilty plea earlier this year. The investigation involved the IRS Criminal Investigation Texas Field Office and the Office of the Texas Attorney General.
US Attorney Justin R. Simmons said Mago had defrauded the federal government during the pandemic and continued his criminal activities through money laundering.
The case highlights the serious legal consequences of misusing emergency relief programmes and engaging in financial crimes.
