Charlotte restaurateur and Hollywood-based son sentenced to prison in COVID fraud scheme
A Charlotte restaurateur and his Hollywood-based son were sentenced to prison this week for stealing $1.7 million in COVID-relief money from taxpayers, federal prosecutors said.
Izzat Freitekh was sentenced to four years in prison, and his son, 35-year-old Tarik Freitekh, to an even stiffer seven years and two months, according to U.S. Attorney Dena King’s office.
Izzat Freitekh is a 57-year-old Waxhaw resident whose businesses have included La Shish Kabob, a longtime Middle-Eastern/Mediterranean restaurant on North Sharon Amity Road in east Charlotte, according to court documents.
His son is a self-described businessman, director and producer who, according to celebritynetworth.com, owns a $7 million home in Hollywood Hills, California,The Charlotte Observer previously reported.
Tarik Freitekh has reported $300 million net worth and an online search reveals photos of his fancy cars and hobnobbing with Justin Bieber and Sofia Vergara, the Observer reported. He’s worked with Snoop Dog, Jennifer Lopez and Shakira, according to the Google search.
The Freitekhs stole the money by submitting multiple Paycheck Protection Program loan applications that misrepresented the number of employees and the payroll expenses at Izzat Freitekh’s companies, according to a news release by King’s office Wednesday.
The government previously seized and secured the forfeiture of approximately $1.3 million in PPP funds illegally obtained by the Freitekhs, which has been returned to a victim lender.
The Freitekhs “engaged in unlawful monetary transactions with the proceeds of the scheme,” according to the news release. Transactions included $30,000 in payments to family members, prosecutors said.
In March, a federal jury in Charlotte convicted the Freitekhs. The jury found Tarik Freitekh guilty of bank fraud, money laundering, conspiracy to commit wire fraud and money laundering, and falsifying and concealing material facts.
His dad was found guilty of three counts of money laundering, money laundering conspiracy and one count of making false statements.
In a statement after the verdicts, King said the Freitekhs exploited a national emergency, the Observer reported.
“The wicked borrow and do not repay, but in the Freitekhs’ case they also lie to cover up the fraud,” King said at the time.
This story was originally published December 8, 2022 at 5:50 AM.