Via Yankee Institute:
A former resident of Vernon was indicted Thursday by a federal grand jury for using a fake pita company to fraudulently obtain $3 million, including $400,000 from the state of Connecticut.
Moshen Youssef, supposed owner of Amoun Pita of South Windsor, was indicted on 14 counts. Two of the charges related to obtaining $400,000 from the Connecticut Department of Economic and Community Development’s Small Business Express program.
Youssef has pleaded not guilty to the charges. All of them carry potential prison sentences.
Small Business Express, an initiative of Gov. Dannel Malloy to offer grants and loans to small businesses, awarded Youssef a $300,000 loan and a $100,000 grant in 2012.
According to DECD, the state funding was meant to retain 11 jobs and hire 25 more people. At the time of his loan application, Youssef had only an average of $33.62 in the bank, according to the indictment.