New York physician gets 4 years in prison for COVID-19 loan fraud

Konstantinos Zarkadas, MD, of Glen Cove, N.Y., was sentenced to spend 51 months in prison and repay $3.5 million in restitution for COVID-19 emergency relief fraud, the Justice Department said March 18.

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Dr. Zarkadas pleaded guilty in November 2021, the Justice Department said. Between March 2020 and July 2020, he applied for, and received, disaster relief loans under the Paycheck Protection Program and Economic Injury Disaster Loan Program based on fraudulent information.

He used more than $194,000 in PPP funds to finance a down payment on a $1.75 million yacht, the department said. He also used the money to pay more than $1 million in judgments against himself, lease luxury cars and make other purchases, including four Rolex and Cartier wristwatches.

In addition to the prison time and restitution, Dr. Zarkadas is forfeiting another $200,000 and the luxury wristwatches as part of a plea agreement, the department said.

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