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Covid-19 Relief Fund Fraud Lands San Jose Restaurant Owner Behind Bars
A San Jose restaurateur who swindled millions from Covid-19 relief funds has been sentenced to 30 months in prison, ordered to pay $3.3 million in restitution.
David Tai Leung, 58, of Sacramento, pleaded guilty in February 2024 to three counts of wire fraud in connection with loans he received from the Restaurant Revitalization Fund (RRF) and the Paycheck Protection Program (PPP).
Leung, who co-owned and controlled the finances of a San Jose restaurant, submitted an application in May 2021 for $5 million in RRF funds that he certified would be used for approved business-related expenses. However, Leung admitted he intended to use the funds for personal gain, transferring $3.5 million to a personal investment account and using RRF funds to purchase securities and pay fees associated with the refinancing of his personal residence.
Leung also admitted to misusing two PPP loans, one for $257,100 and another for $360,055, to enrich himself by making payments to a Lexus dealership and spending money at a casino in Northern California. He ultimately received approximately $5.6 million in RRF and PPP funds and unlawfully used $3,359,701.28 of those funds.
Assistant U.S. Attorneys Ivana Djak and Alethea Sargent are prosecuting the case, which is the result of an investigation by the FBI and SBA OIG. The sentence was handed down by the Hon. Charles R. Breyer, Senior United States District Judge.
In addition to his prison sentence and restitution order, Leung was ordered to serve three years of supervised release to begin after his prison term is completed.
Leung’s crimes were committed as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the American Rescue Plan Act (ARPA), both federal laws enacted to provide emergency financial assistance to small businesses affected by the Covid-19 pandemic.
Key Facts
- State: California
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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