California Man Arrested on Charges of Covid-19 Loan Fraud

A California man has been charged with multiple counts of wire fraud and money laundering after allegedly obtaining a $2 million Covid-19 business loan through false means.

The U.S. Attorney's Office for the Central District of California announced that 34-year-old Bruce Choi was arrested on Tuesday upon his arrival at San Francisco International Airport from Japan.

According to an indictment, Choi applied for a Paycheck Protection Program (PPP) loan in 2020, claiming to be the CEO and owner of a business called 'Premier Republic' with an average monthly payroll of $798,000. However, the investigation revealed that Premier Republic was fictitious and had no employees.

Choi allegedly submitted fraudulent documents to the lender, including fake tax returns and bank statements, in order to secure the loan. He also applied for an Economic Injury Disaster Loan (EIDL) through the Small Business Administration, claiming his real estate business 'Bruce' employed 10 people and brought in gross revenues of $475 million in 2019.

The lender disbursed $1,995,000 to Choi, which he later wired to a Kraken cryptocurrency exchange account. Federal prosecutors have seized 40 bitcoins and other cryptocurrency as part of the investigation.