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A Salt Lake City accountant was sentenced today upon his felony conviction after he fraudulently obtained about $221,400 in Paycheck Protection Loan (PPP Loan) funds and Economic Injury Disaster Loan (EIDL Loan) funds for clients, without their knowledge. As a result, he personally gained about $10,150 from the scheme, which he was ordered by the court to pay in restitution.
Peter N. Sinju, 51, of Salt Lake City, pleaded guilty in December 2025 to wire fraud.
According to court documents and statements made at Sinju’s change of plea and sentencing hearings, from around June 2, 2020, to about July 3, 2020, Mr. Sinju engaged in a scheme and artifice to defraud the United States and the Small Business Administration (SBA) by submitting at least four fraudulent PPP Loan applications and five fraudulent EIDL-Loan applications on behalf of his clients. The COVID-19 PPP Loans were provided to small businesses for funding to meet specific obligations, including payroll and rent during the pandemic.
Mr. Sinju told his accounting clients that because he had access to their financial information, he could submit the loan applications for them and obtain emergency loans to help their businesses. Without his clients’ knowledge, Mr. Sinju inflated the payroll and gross revenue amounts in the loan applications. For three PPP-Loan applications for three separate clients, he fabricated payroll sheets that used false, identical wage amounts for employees in each business. Some of the listed employees did not even exist, and each of the business owners denied having certified the fabricated payroll sheets.
In total, Mr. Sinju applied for about $461,197.50 in fraudulent loans. However, because some of the loan applications were denied, Mr. Sinju only obtained about $221,400 for his unwitting, and innocent, clients. In return, Mr. Sinju charged his clients a total of about $10,150 in fees or commission for his services in helping them apply for these loans.
U.S. Attorney Melissa Holyoak of the District of Utah made the announcement.
The case was investigated jointly by the FBI Salt Lake City Field Office and the Office of Inspector General U.S. Small Business Administration (SBA-OIG).
Assistant United States Attorneys Todd C. Bouton and Brian Williams of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
Paycheck Protection Program (PPP)
The Fraud Section leads the Criminal Division's prosecution of fraud schemes that exploit the Paycheck Protection Program (PPP). Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at Justice.gov/OPA/pr/justice-department-takes-action-against-covid-19-fraud.