Willoughby Hills man sentenced to 33 months in prison for defrauding SBA

May 26—A Willoughby Hills man has been sentenced to 33 months in prison for defrauding the Small Business Administration of $1.2 million.

According to a news release from the United States Attorney Office, 38-year old Aydin Kalantarov of Willoughby Hills was sentenced by U.S. District Judge Pamela A. Barker after he pleaded guilty to defrauding the SBA in its Economic Injury Disaster Loan program under the Coronavirus Aid, Relief and Economic Security Act.

Kalantarov was also sentenced to three years of supervised release, given a $200 special assessment and agreed to pay up to $1.2 million in restitution.

According to court documents, from May 2020 through October 2020, Kalantarov, along with his two brothers, Zaur Kalantarli and Ali Kalantarli, conspired to defraud the SBA of nearly $7 million in EIDL loans. As part of the scheme the brothers created 70 fictitious Ohio corporations with agriculture sounding names, such as "Ohio Almonds and Peanuts" and "Ohio Organic Carrots."

Once the fictitious corporations were created, the brothers submitted fraudulent EIDL loan applications to the SBA claiming that their business was adversely affected by the pandemic. The SBA funded 47 of the applications for a total of approximately $7 million.

Kalantarov used most of his funds to purchase a house in California.

Zaur Kalantarli and Ali Kalantarli remain at large.

According to the release, the investigation was conducted by the U.S. Treasury Inspector General for Tax Administration, the Federal Bureau of Investigation, Cleveland, the IRS Criminal Investigation, the U.S. Department of Agriculture, Office of Inspector General and the Small Business Administration, Office of Inspector General.

This case was prosecuted by Assistant U.S. Attorney Brad J. Beeson.