Konstantinos Zarkadas, a Glen Cove-based medical doctor, was sentenced to 51 months’ imprisonment for fraudulently obtaining millions of dollars in COVID-19 emergency relief funds. The Court also ordered Dr. Zarkadas to pay approximately $3.5 million in restitution. Dr. Zarkadas pleaded guilty in November 2021 to disaster relief fraud and wire fraud in connection with his receipt of small business loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDLP). As part of the plea agreement, Dr. Zarkadas forfeited $200,000 and four luxury wristwatches. Between March 2020 and July 2020, amid the COVID-19 pandemic, Dr. Zarkadas fraudulently applied for, and received based on the false information that he provided, at least 11 PPP and EIDLP loans totaling approximately $3,700,000, on behalf of corporate entities he controlled. Dr. Zarkadas laundered the loan proceeds through various bank accounts, ultimately using the funds for extravagant personal purchases and other impermissible purposes. For example, in July 2020, Dr. Zarkadas used approximately $194,915.42 in PPP funds to finance the down payment on a $1.75 million yacht.
