A Maple Grove man has been sentenced to five years in prison after fraudulently applying for more than $9.6 million in Paycheck Protection Program loans.
Aditya Raj Sharma, 47, was sentenced to 60 months in prison followed by two years of supervised release, in U.S. District Court Wednesday. Sharma received and misappropriated around $1.7 million of the money he applied for.
He pled guilty to one count of wire fraud in July.
Sharma was founder, CEO and president of Crosscode Inc., a cloud-based software development company originally based in Maple Grove. After he was terminated from the company by the board of directors in 2019, he went on to create three separate companies, Kloudgaze Inc., Neoforma LLC and Mokume LLC, in summer 2020.
Between April 2020 and August 2020, Sharma submitted applications through different lenders for more than $9.6 million from the federal government’s Paycheck Protection Program. He used fabricated documents to apply for the loans and made false claims about how many employees his companies had, according to court documents.
In April 2020, Sharma submitted one application under the company name “Crosscode dba Kloudgaze.” He claimed it had been in businesses since February of 2020 despite not starting Kloudgaze until May of that year.
He also falsely claimed that he was still the owner and CEO of Crosscode and that it sometimes did business under the name Kloudgaze.
In total, lenders deposited more than $1.7 million in PPP loans into Sharma’s accounts. Sharma then went on to misappropriate the funds to pay off legal debts, start new businesses and pay for landscaping services. He also transferred $14,000 to an account in India.
He spent $5,000 on a down payment toward the installation of a $64,300 pool at his home, and transferred about $14,000 to a financial account in India, prosecutors allege.