A man from Southern California was sentenced to imprisonment for defrauding the government with more than $ 6.9 million through a plan to target small corporate loans during the Covid-19 pandemic.
The man was identified as Abraham Park, 67, from La Mirada, according to the US Public Prosecutor’s Office.
The plan was fraudulent Small Business Administration (SBA) Among millions of dollars in loans through EIDL Loan Loan Program (EIDL)The officials said.
According to court documents, crimes occurred from March 2020 to October 2022. Park was the owner of a financial services company that helped customers to repair credit scores and obtain financing, including loans.
When the epidemic began, Park Mogleh asked to create fake companies’ entities so that he could submit EIDL Loan Loans to SBA on their behalf.
On the other hand, his clients were paying him part of the loans received as a relationship. Park also submitted false requests to himself and his family members.
In total, more than 120 fraudulent requests were submitted through this method. Although only 73 loans were funded, it led to a loss of nearly $ 7 million against SBA.
On March 20, Park acknowledged that he was guilty of fraud charge and the charge of money laundering. On August 7, he was sentenced to 3 years and 10 months in prison and ordered to pay $ 6,993,700 as compensation and 535,041 dollars.
“Since the beginning of the CARES law, the ruler of the fraud department is more than 200 defendants in more than 130 criminal cases, and it has seized more than $ 78 million of cash returns derived from PPP funds obtained fraudulently, in addition to many real estate real estate and luxury materials that have been purchased with these revenues,” said federal officials.
More information, including methods of reporting fraud, It can be found here.