Illinois Man Sentenced to 10 Years for $14M COVID Loan Fraud

Sharhabeel Shreiteh used scam proceeds to build a mansion for his second wife in Palestine, angering his first wife in the U.S.

Mar. 12, 2026 at 5:51pm

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Sharhabeel Shreiteh, a 46-year-old Illinois tax preparer, was sentenced to 10 years in prison for his role in a $14 million COVID-19 relief loan fraud scheme. Shreiteh admitted to helping over 1,000 people obtain fraudulent Paycheck Protection Program (PPP) loans, pocketing around $740,000 in kickbacks. He used the ill-gotten gains to build a home and buy a luxury car for his wife and children in Palestine, infuriating his wife of 18 years in the U.S., Hania Atiq Shreiteh.

Why it matters

The case highlights the widespread abuse of COVID-19 relief programs, with Shreiteh's scam being described as one of the 'most stupid frauds in history.' It also sheds light on the personal and family turmoil that can result from such crimes, as Shreiteh's actions deeply upset his American wife.

The details

Shreiteh submitted over 1,500 fraudulent PPP loan applications on behalf of at least 1,025 clients, resulting in around $14 million in funds being wrongfully disbursed. He pleaded guilty to a single count of wire fraud in August 2025 after being charged with 13 counts the previous year. In addition to the PPP fraud, Shreiteh was also collecting over $40,000 in unemployment benefits during the same period, despite making nearly $750,000 in kickback payments.

  • Shreiteh pleaded guilty to a single count of wire fraud in August 2025.
  • Shreiteh was charged with 13 counts of wire fraud in a superseding indictment in September 2023.
  • Shreiteh started submitting the fraudulent PPP loan applications in 2020.

The players

Sharhabeel Shreiteh

A 46-year-old Illinois tax preparer who admitted to helping over 1,000 people obtain fraudulent Paycheck Protection Program (PPP) loans, pocketing around $740,000 in kickbacks.

Hania Atiq Shreiteh

Sharhabeel Shreiteh's wife of nearly 18 years in the U.S., who was angered to learn that her husband had used scam proceeds to build a home and buy a luxury car for his second wife and children in Palestine.

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What they’re saying

“You suck! I bust my a-- for 13 years and don't have like she gets without working for it!!!”

— Hania Atiq Shreiteh, Sharhabeel Shreiteh's wife (Chicago Tribune)

“Having a second family aligns with his religious beliefs and was approved by his wife. He hopes that once the situation in the Middle East stabilizes, his other family can visit him here.”

— Unnamed, Court memo seeking a lighter sentence (Court filings)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Sharhabeel Shreiteh out on bail pending his 10-year prison sentence.

The takeaway

This case highlights the devastating personal and family consequences that can result from large-scale fraud, as well as the need for stricter oversight and enforcement of COVID-19 relief programs to prevent such 'staggering' abuses in the future.