Albany, February 16, 2026 — Nine New Yorkers, including three from Long Island, have pleaded guilty to defrauding the state’s COVID-19 pandemic relief programs, authorities announced Friday. The scheme involved applications submitted for businesses that were either nonexistent or already closed, diverting funds intended to help struggling small businesses survive the economic fallout of the pandemic.
Long Island Residents Among Those Who Pleaded Guilty in Pandemic Grant Scheme
The guilty pleas represent a significant step in the state’s ongoing effort to recover misused funds from the COVID-19 Pandemic Small Business Recovery Grant Program.
- Tanvir Milon, Juned Khan, and Nadeem Sheikh, all Long Island residents, were among the nine individuals who admitted guilt.
- The defendants collectively stole nearly $1.1 million in state funds and are ordered to pay restitution.
- The investigation revealed additional fraudulent claims against the federal Economic Injury Disaster Loan Program.
- State officials are actively working to reclaim misappropriated grant money from over 100 businesses.
Q: What happened with the pandemic relief funds? A: Nine New Yorkers pleaded guilty to stealing over $1 million in state grants meant to help small businesses during the COVID-19 pandemic by submitting fraudulent applications for businesses that didn’t exist or were already shuttered.
The guilty pleas, entered in Queens Supreme Court between May 2025 and February 2026, involved charges of grand larceny in the fourth degree and petit larceny, according to the New York State Inspector General’s Office. The investigation was a collaborative effort between the office of Queens District Attorney Melinda Katz and the Inspector General.
The three Long Islanders implicated in the scheme are Tanvir Milon, 55, of Farmingdale; Juned Khan, 56, of Deer Park; and Nadeem Sheikh, 56, of New Hyde Park. Court documents show Milon was ordered to pay $280,512 in restitution, while Khan and Sheikh were ordered to pay $70,000 and $46,208, respectively.
According to investigators, Milon stole $280,512 from the state grant program through claims linked to nine fraudulent businesses. Khan used eight businesses to steal $127,300 from the state program and an additional $72,000 from the federal EIDL program. Sheikh stole $96,208 in state recovery grants through two fabricated businesses.
This case is part of a broader state initiative to recover funds awarded to more than 100 small businesses and arts groups that were not eligible for financial relief. A June audit by State Comptroller Thomas P. DiNapoli’s office revealed that nearly $4.1 million in grant funds from the state’s $800 million Recovery Grant Program were incorrectly awarded to 101 entities statewide, with 17 of those located on Long Island.
Empire State Development, the state agency responsible for overseeing the grant program, has stated its commitment to recovering the misappropriated funds. Officials with the agency declined to comment on the specifics of this case Friday.
The other six defendants are Mahbub Malik, 41, of Astoria; Yousuf Md, 45, of Elmhurst; Mohammed Chowdhury, also known as Khokan Ashraf, 68, of Jackson Heights; Zakir Chowdhury, 59, and Tufail Ahmed, 50, both of Jamaica; and Mohammad Khan, 49, of Jamaica Hills. According to Katz, the defendants submitted multiple applications, falsely claiming the grants were needed to cover expenses like payroll, rent, utilities, and supplies.
“These nine defendants admitted to stealing thousands of dollars in state funds intended to support struggling businesses during the COVID-19 pandemic,” Katz said in a statement. “As part of their guilty pleas, the defendants are now required to make restitution.”
New York State Inspector General Lucy Lang echoed this sentiment, stating, “Exploiting disaster relief funds for personal gain is both criminal and shameful at any time, but particularly during a global health crisis. New York will not stand for putting greed above the public good.” The state has already recovered $760,000 of the nearly $1.1 million in restitution ordered.
