Bergen County Attorney Accused of $9M PPP Fraud

NEWARK, N.J. – A Bergen County attorney is facing federal charges after allegedly swindling nearly $9 million in Paycheck Protection Program (PPP) loans intended to keep small businesses afloat during the COVID-19 pandemic. Jae H. Choi, 48, of Cliffside Park, New Jersey, was arrested today and charged with three counts of bank fraud and one count of money laundering, U.S. Attorney Craig Carpenito and Acting Assistant Attorney General Brian C. Rabbitt announced.

According to court documents, Choi allegedly fabricated an entire business operation, submitting fraudulent applications to three separate lenders. He claimed these companies provided educational services, but investigators say he manufactured employee numbers and manipulated financial records to inflate the businesses’ supposed financial health. The complaint alleges Choi falsified a driver’s license as part of the scheme.

The alleged scam worked like this: Choi falsely claimed his companies had hundreds of employees and a monthly payroll exceeding $3 million. Each lender, believing the lies, approved a roughly $3 million PPP loan for each of the three bogus businesses, resulting in a total of nearly $9 million in federal funds diverted into Choi’s pockets. This money wasn’t going to struggling workers; it was fueling a lavish lifestyle.

Federal investigators quickly traced the stolen funds. Choi allegedly used the money to purchase a nearly $1 million home in Cresskill, New Jersey, funded approximately $30,000 in home remodeling, and poured millions more into the stock market through an account held in his spouse’s name. The CARES Act, designed to provide emergency relief to those suffering from the economic fallout of the pandemic, was instead used to line Choi’s personal accounts.

The Paycheck Protection Program, authorized under the CARES Act, offered forgivable loans to small businesses for job retention and essential expenses. Qualifying businesses could receive loans with a low 1 percent interest rate, with the principal and interest forgiven if funds were used appropriately – for payroll, rent, and utilities. Choi’s alleged actions represent a brazen betrayal of the program’s intent, stealing resources from businesses genuinely in need.

Choi is expected to make his initial appearance by videoconference before U.S. Magistrate Judge James B. Clark III. The case was investigated by IRS – Criminal Investigation, the U.S. Postal Inspection Service, the Small Business Administration Office of the Inspector General, and the Social Security Administration – Office of the Inspector General. Assistant U.S. Attorney Andrew Macurdy and Trial Attorney Andrew Tyler are prosecuting the case. Anyone with information about COVID-19 fraud is urged to report it to the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Remember, these are allegations, and Choi is presumed innocent until proven guilty in a court of law.

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