Brooklyn man indicted for loan fraud and election scheme: DA

Authorities indicted a Bay Ridge man on multiple charges for allegedly stealing more than $104,000 in COVID-19 relief funds and a scheme to get on the 2024 Democratic primary ballot for U.S. Senate by using fraudulent election petitions.

According to Brooklyn District Attorney Eric Gonzalez, the defendant, Khaled Salem, purportedly applied for a Paycheck Protection Program loan in April of 2020, for his nonprofit organization, American Human Rights, Inc. He later received a $104,166 loan on March 15, 2021 before applying for loan forgiveness where he provided false information about payroll costs and listing fake employees.

“Misusing public funds intended to help small businesses recover, and fabricating support to appear on the ballot, are serious allegations that reflect a troubling disregard for the law and public trust,” Gonzalez said in a statement. “Whether it’s stealing taxpayer money or trying to manipulate an election, these alleged actions demand accountability. My office remains committed to protecting both public resources and the integrity of our democratic process.”

In a separate plot, Salem allegedly submitted a nearly 6,000-page petition to the New York State Board of Elections on April 2, 2024, seeking to qualify for the Democratic primary ballot. The petition included around 30,000 signatures collected across New York State, but witnesses and investigators found that many signatures were forged, with false addresses and fake signatures.

Witnesses reportedly denied collecting signatures for Salem’s campaign, and ultimately, he did not make it onto the ballot.

“New Yorkers must be able to trust that our democracy and our economy are protected from fraud,” Attorney General Letitia James said. “Khaled Salem allegedly tried to undermine an election and critical financial aid to businesses with his schemes, but today we are bringing him to justice.”

The case involves a 60-count indictment, including charges of grand larceny, offering false instruments for filing, identity theft, and election law violations. Salem was ordered release without bail and is scheduled to return to court in September.

Raymond J. Riley, III and Kristen Zebrowski Stavisk, co-Executive directors of the NYS Board of Elections also called out the announced crimes.

“While incidents of election fraud are rare, they are serious and unacceptable. New Yorkers deserve to know that those who attempt to undermine the democratic process will face consequences,” the joint statement said.

The investigation was conducted in partnership with the New York State Attorney General’s Office and the State Board of Elections. Prosecutors from the Brooklyn DA’s Office, led by Assistant District Attorney Adam Libove, are handling the case.