A Ravenna man has been convicted by a federal jury of orchestrating a financial conspiracy that defrauded the U.S. government of over $1 million in pandemic benefits.
Mustafa Ayoub Diab, 41, was found guilty on 12 counts of theft of government funds, 12 counts of bank fraud, 11 counts of wire fraud, six counts of aggravated identity theft, and one count each of conspiracy to commit wire and bank fraud and to launder monetary instruments. The Northern District of Ohio Court announced the conviction March 28.
Sentencing is scheduled for July 28. Diab faces a maximum penalty of 30 years in prison.
Another Ravenna resident, Elizabeth Lorraine Robinson, 33, identified as Diab’s co-conspirator according to court documents, pleaded guilty in February to conspiracy, wire fraud, bank fraud and theft of government funds. Robinson is currently awaiting sentencing and also faces up to 30 years in prison.
Court documents state that Diab owned and operated a tax return preparation business in Akron and, along with Robinson, developed a scheme to take advantage of government programs that expanded unemployment and small business benefits that became available during the Covid-19 pandemic.
From around June 2020 to August 2021, Diab submitted fraudulent applications for pandemic unemployment benefits and small business assistance for many of his tax preparation business clients without their knowledge. In evidence presented to the jury at trial, Diab submitted fraudulent applications in the names of nearly 80 victims, causing the federal government to pay out more than $1.2 million in pandemic benefits that were deposited into various bank accounts that Diab controlled.
With the cash, Diab bought real estate, cars and took international trips.
