9 New Yorkers Admit to Stealing COVID-19 Relief Funds

Three Long Island residents among those who defrauded state's small business recovery program

Published on Feb. 14, 2026

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Nine New Yorkers, including three from Long Island, have pleaded guilty to defrauding the state's COVID-19 Pandemic Small Business Recovery Grant Program. The defendants submitted applications for grants using information related to businesses that were either fictitious or already closed, seeking funds intended to help small firms recover from the economic impact of the pandemic.

Why it matters

This case highlights ongoing efforts to crack down on fraud and misuse of pandemic relief funds, which have been a significant issue nationwide. The pursuit of restitution demonstrates a commitment to recovering public funds, though the process can be lengthy and complex with no guarantee of full recovery.

The details

The nine defendants pleaded guilty to grand larceny and petit larceny charges in Queens Supreme Court. Tanvir Milon of Farmingdale submitted claims for nine fraudulent businesses and also defrauded the federal COVID-19 Economic Injury Disaster Loan Program for over $2.5 million. Juned Khan of Deer Park used eight businesses to steal $127,300 from the state program and $72,000 from the federal program. Nadeem Sheikh of New Hyde Park stole $96,208 in state recovery grants through two fraudulent businesses.

  • Between May 2025 and February 2026, the nine defendants pleaded guilty.
  • A June 2025 audit by the state Comptroller's office found nearly $4.1 million in grant funds were erroneously awarded to 101 entities across New York.

The players

Tanvir Milon

A 55-year-old resident of Farmingdale who submitted claims for nine fraudulent businesses and defrauded the federal COVID-19 Economic Injury Disaster Loan Program for over $2.5 million.

Juned Khan

A 56-year-old resident of Deer Park who used eight businesses to steal $127,300 from the state program and $72,000 from the federal program.

Nadeem Sheikh

A 56-year-old resident of New Hyde Park who stole $96,208 in state recovery grants through two fraudulent businesses.

Melinda Katz

The Queens District Attorney.

Lucy Lang

The New York State Inspector General.

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What they’re saying

“We must not let individuals continue to damage public trust and take advantage of programs designed to help those in need.”

— Melinda Katz, Queens District Attorney

“This case is part of a broader effort to reclaim pandemic relief funds improperly awarded to over 100 businesses and arts groups statewide.”

— Lucy Lang, New York State Inspector General

What’s next

The state has already received $760,000 of the nearly $1.1 million in restitution ordered, and continues its efforts to recover misused funds.

The takeaway

This case highlights the ongoing challenge of preventing fraud in pandemic relief programs, and the importance of robust oversight and accountability measures to protect taxpayer dollars intended to support small businesses and communities in need.