US authorities investigate Pakistani-American businessmen in Covid-19 scandal

US federal and state authorities are conducting investigations into two Pakistani-American businessmen and their associates over allegations of money laundering, wire fraud, and tax evasion, according to multiple media reports.

The probe focuses on the creation of allegedly complex and opaque business structures designed to conceal financial activity and avoid tax liabilities, according to officials familiar with the case.

The investigation involves two Texas-based companies: Riceland Investment Group LP, a limited partnership, and Mecca Farms Group LLC, a limited liability company. Authorities suspect the firms were used to launder proceeds from illicit sources—commonly referred to as "black money"—and obscure the real ownership and control of the assets.

Riceland Investment Group was initially established by Syed Rashid Ali, a businessman based in Texas. In 2015, Riceland entered into a partnership with Mecca Farms Group, which is owned by Muhammad Tahir Javed, another Texas-based businessman who briefly served as an advisor to the interim Prime Minister of Pakistan. The deal resulted in Javed acquiring full ownership of Riceland and a controlling 51% stake in Mecca Farms.

According to US investigators, the ownership arrangement raises red flags. A source close to the inquiry said, “The structures and transactions between these companies appear unusually complex and warrant further scrutiny regarding their purpose and the origin of the funds involved.”

Both Javed and the Ali brothers—Syed Rashid Ali and Syed Shahid Ali—have previously been linked to legal issues in the United States. The trio has been named in investigations related to financial fraud, including a $35 million COVID-19 relief fraud scheme that was probed by the US Department of Justice. While no charges related to the current investigation have been formally announced, authorities continue to analyze financial records and transactional data from the two companies.

In addition to financial misconduct, Muhammad Tahir Javed has also faced political and legal controversies. His appointment as an advisor to interim Prime Minister Anwaar-ul-Haq Kakar in 2023 was rescinded shortly after due to revelations of an undeclared conviction in the US

In the current case, documents reviewed by investigators show that Javed, described in the agreement as “the Investor,” agreed to purchase a 55% ownership stake in Mecca Farms for $2.465 million. The initial payment was $500,000, with the remaining balance to be provided on an as-needed basis within five days of any funding request by Mecca Farms. Investigators believe such flexible payment terms may have been used to facilitate untraceable financial flows.

While no formal charges have been brought against the individuals or companies involved at this stage, the case remains open. Authorities are examining the financial trail to determine if the transactions violated federal financial regulations or tax laws.