The Perfect Enemy | Brothers accused of swindling $7 million in coronavirus-related loans for some 70 fake businesses, all registered in Euclid

CLEVELAND, Ohio— Three brothers are accused of swindling the federal government out of some $7 million in small-business loans and grants aimed at helping companies survive the coronavirus pandemic.

Zaur Kalantarli, Ali Kalantarli and Aydin Kalantarov created some 70 fake businesses, all with the same address in Euclid, that claimed to farm organic food. The companies, however, did no actual business, according to prosecutors.

A federal grand jury in Cleveland on Monday handed up indictments that said the businesses were fake, and the brothers used the money to buy houses and cars. All three are charged with wire fraud, conspiracy and aggravated identity theft.

Cleveland.com and The Plain Dealer reached out to Zaur Kalantarli’s attorney, Ed La Rue, and Kalantarov’s attorney, Todd Spodek. No attorney is listed in court records for Ali Kalantarli. An arraignment is set for Dec. 14.

Zaur Kalantarli lives in Euclid and his two brothers live in Los Angeles, according to court records.

The trio created fake businesses with similar names, such as Ohio Almonds & Peanuts LLC and Ohio Organic Carrots LLC, between May 17, 2020, and October 9, 2020.

They submitted applications for $150,000 each through the Small Business Association’s Economic Injury Disaster Loan program, enacted to help businesses struggling during the coronavirus pandemic. The program was part of the CARES Act, which injected $2.2 trillion in economic relief to the struggling economy.

The tree brothers submitted 74 applications for loans and received some $7.4 million, according to an FBI affidavit. The indictment charges the trio with ripping off the government of $6.9 million.

All three used their wives’ names on some of the applications, which is the basis for the identity theft charges, according to court records. The wives were initially charged in the case, but the grand jury only handed up charges against the three brothers.

Zaur Kalantarli used some of the funds to buy two homes in Euclid; Ali Kalantarli used the money to buy two homes in South Euclid and a Jeep Wrangler; and Kalantarov used the money to buy two homes worth more than $300,000 in Irvine, California.

Investigators during the yearslong investigation seized the California homes and sold them for $1.1 million.

Authorities also seized $16,200 from Kalantarov’s backpack at Los Angeles International Airport, $3.1 million from banks associated with the trio, and 18 houses and condos in the Cleveland area, including nine in Euclid, four in South Euclid and one each in Mayfield Heights, Cleveland, Cleveland Heights, Wickliffe and Willowick.

The U.S. Marshals Service sold all but two of the Northeast Ohio homes for a combined $1 million. The other two have not yet been sold.