Bergen County Man Sentenced to 24 Months in Federal Prison for $670K COVID-19 Relief Fraud
the staff of the Ridgewood blog
Rutherford, N.J. — A Rutherford, New Jersey man has been sentenced to 24 months in federal prison for his role in orchestrating a scheme to fraudulently obtain more than $670,000 in COVID-19 emergency relief funds, federal officials announced.
Malak Faltawws, 49, was sentenced on August 12, 2026, by U.S. District Judge Evelyn Padin in Newark Federal Court. Faltawws previously pleaded guilty to two counts of an indictment charging him with wire fraud and money laundering.
Inflated Payrolls and Personal Gain: How the Scheme Worked
According to court documents and official statements made by U.S. Attorney Robert Frazer, Faltawws executed the fraudulent scheme between March 2020 and November 2021.
Faltawws targeted federal emergency funding programs—specifically the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program—which were established to assist struggling small businesses during the pandemic.
To secure $670,292 in emergency loans and cash advances, Faltawws submitted falsified applications that grossly inflated:
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Business revenue figures
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Payroll expenses
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Total employee counts
Once the federal funds were deposited into his accounts, Faltawws diverted the cash for his own personal use rather than legitimate business operations.
Prison Time, Restitution, and Fines
In addition to his 24-month prison sentence, Judge Padin ordered Faltawws to serve:
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3 years of supervised release following his prison term
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$670,292 in full restitution
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A $10,000 fine
The prosecution was handled by Assistant U.S. Attorney Farhana C. Melo of the Economic Crimes Unit in Newark, following an extensive investigation by special agents of the Internal Revenue Service – Criminal Investigation (IRS-CI) Newark Field Office, under the direction of Special Agent in Charge Jenifer L. Piovesan.
Broader Federal Fraud Enforcement Efforts
The sentencing comes amidst heightened federal scrutiny on pandemic-era relief fraud. The U.S. Department of Justice continues to leverage its National Fraud Enforcement Division to track down and prosecute individuals who exploited federal relief initiatives, supporting broader federal efforts by the Task Force to Eliminate Fraud.
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