DETROIT — In one of the latest rulings tied to COVID-19 relief fraud, a federal court in Detroit sentenced a Macomb County man to three years in prison for his role in a multimillion-dollar scheme involving the federal Paycheck Protection Program (PPP).

The defendant, Samer Kammo, 46, of Shelby Township, was also ordered to pay nearly $2.5 million in restitution.

Kammo pleaded guilty last August to wire fraud and bank fraud charges for his participation in a criminal conspiracy that fraudulently obtained more than $3 million in PPP loans intended to assist struggling businesses during the COVID-19 pandemic.

He and his co-conspirators, Christina Anasi, also of Shelby Township, and Rita Shaba, of Macomb Township, submitted fraudulent federal Paycheck Protection Program (PPP) loan applications for several businesses.

Kammo, Shaba and Anasi, who is Kammo’s wife, all pleaded guilty last year to conspiring to commit wire fraud and bank fraud.

According to U.S. Attorney for the Eastern District of Michigan Jerome F. Gorgon Jr., the trio engaged in a coordinated effort to steal pandemic relief funds by submitting falsified information in loan applications.

Fraudulent applications and fabricated records

Court documents show that Kammo, Shaba and Anasi falsified payroll data and falsely certified that loan proceeds would be used for legitimate business expenses. They also submitted fabricated employee records, health insurance documentation, bank statements and tax filings to support their applications.

Prosecutors said the conspirators misused personal identifying information belonging to several relatives — including Kammo’s mother — to carry out the fraud across multiple business entities.

Investigators determined that the group secured more than $3 million from the PPP program, which Congress established to provide emergency financial support to businesses during pandemic-related shutdowns. Authorities were able to recover approximately $2.1 million of the funds, leaving significant losses.

Federal authorities emphasize accountability

“This defendant and his co-conspirators tried to cheat the system by exploiting a federal relief program meant to help Americans in need,” Jennifer Runyan, special agent in charge of the FBI Detroit Field Office, said. “Let this case send a clear message: crime does not pay.”

Jared Murphey, acting special agent in charge for Homeland Security Investigations (HSI) in Detroit, underscored that pandemic-related fraud remains a priority.

“Although the pandemic is years behind us, HSI and our partners are committed to holding fraudsters accountable,” Murphey said. “By now the writing on the wall should be crystal clear — if you fraudulently obtained government funds during the pandemic, you will be held accountable.”

Last month, the same federal court sentenced Rita Shaba to 27 months in prison, while Christina Anasi remains awaiting sentencing.

Prior federal conviction

Court records show that Kammo previously served a three-year federal prison sentence for drug trafficking connected to a liquor store owned by his father.

In a sentencing memorandum, Kammo’s attorney, Shawn Desai, stated that his client “feels deep shame, regret and sorrow for his stark deviation from the lawful path he had successfully followed for nearly a decade.”

Desai acknowledged that Kammo transferred fraud proceeds into accounts he controlled, knowing the funds had been obtained illegally. However, he argued that his client’s judgment was clouded by the panic and confusion that characterized the early days of the pandemic.

He wrote that Kammo “wrongly convinced himself that taking ‘loans’ he intended to repay was different from outright theft”, believing that borrowing money during an emergency — with the intent to repay it — would ultimately harm no one.

Desai added that Kammo’s deepest regret stems from “involving his wife and jeopardizing the stability of their entire family.”

Broader pattern of COVID relief fraud in Michigan

Federal authorities continue to pursue pandemic-related fraud cases across Michigan. In the state alone, numerous significant cases have been uncovered, including:

• The Michigan Unemployment Insurance Agency paying approximately $11 billion in fraudulent claims from the start of COVID-19 through 2022.
• A Macomb County woman sentenced in January for her role in a $3 million COVID PPP fraud scheme.
• A Michigan man sentenced in 2022 for approximately $230,000 in fraudulent COVID unemployment payments.
• Ten Michigan residents sentenced in 2024 in connection with a $4.9 million COVID unemployment fraud scheme.

Authorities say the continued prosecutions send a clear message that misuse of public relief funds will result in criminal penalties — even years after the pandemic emergency has ended.