PORTLAND, Ore. (KOIN) – A former West Linn dentist was sentenced to federal prison Thursday for the attempted theft of COVID-relief funds and illegal distribution of prescription drugs, the U.S. Attorney’s Office in Oregon announced.
According to court documents, Salwan Wesam Adjaj, 44, attempted to steal more than $170 million in fraudulent applications for Economic Impact Disaster Loans and Paycheck Protection Program funds.
The EIDL and PPP relief programs, authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, granted small businesses an opportunity to apply for low-interest loans through the U.S. Small Business Administration during the pandemic.
Authorities say Adjaj used false information, including the identities of more than 40 people, to submit more than 100 COVID-relief program applications that totaled to $11.5 million stolen from SBA.
FBI Special Agent Kieran L. Ramsey said Adjaj took advantage of the relief programs meant for small businesses adversely impacted by the pandemic.
“Salwan Adjaj executed an elaborate ruse to take advantage of federal emergency assistance in a time when so many businesses were struggling to stay afloat,” Ramsey said. “Even after several fraudulent loan applications were denied, Adjaj’s greed grew.”
According to court documents, Adjaj used the stolen funds through online brokerage accounts where he speculated in stocks and cryptocurrencies – even after his arrest.
Prior to engaging in fraud, officials say Adjaj also distributed and possessed thousands of doses of prescription drugs – such as steroids and human growth hormones – which he obtained by using his position as a dentist and purchasing on the dark web.
After searching Adjaj’s home and dental practice in 2020, the Oregon Board of Dentistry suspended his dental license.
Adjaj was sentenced to 70 months in federal prison and must pay more than $10.5 million in restitution to private lenders and the SBA, according to court documents.
Natalie Wight, U.S. Attorney for the District of Oregon, said “Salwan Adjaj’s crimes showed both his indifference to those enduring the economic effects of the COVID-19 pandemic and his disregard for the health and safety of those to whom he unlawfully dispensed prescription drugs.”