New Jersey Man Charged with $9M PPP Loan Scam
A New Jersey man has been charged with obtaining nearly $9 million in Paycheck Protection Program (PPP) loans through a complex scheme of fraud and money laundering, according to a federal investigation.
U.S. District Judge Michael E. Farbiarz entered a final judgment forfeiting to the United States approximately $7 million in fraud and money laundering proceeds, as well as a real property purchased with laundered fraud proceeds that has an estimated market value of nearly $2 million, United States Attorney Alina Habba announced.
The scheme allegedly took place between April 2020 and August 2020, during which Jae H. Choi fraudulently obtained PPP loans totaling approximately $8,971,457. Choi then laundered those fraud proceeds through various financial accounts held in the names of Choi’s nominees, including Choi’s relative and various corporate entities that Choi controlled.
According to the civil forfeiture complaint, Choi spent the laundered fraud proceeds on personal expenses and purchased the Cresskill real property. The government is represented by Assistant U.S. Attorney Peter A. Laserna of the Bank Integrity, Money Laundering, and Recovery Unit of the Criminal Division in Newark.
The investigation was led by the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, special agents of the Social Security Administration, Office of the Inspector General’s Boston New York Field Division, under the direction of Special Agent in Charge Amy Connelly, postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher A. Nielsen, and special agents of the U.S. Small Business Administration, Office of Inspector General’s Eastern Region, under the direction of Special Agent in Charge Amaleka McCall-Braithwaite.
Choi’s actions have been deemed a serious breach of the public trust, and he will face the full weight of the law for his crimes. The case serves as a reminder of the importance of holding individuals accountable for their actions and ensuring that those who engage in fraud and money laundering are brought to justice.
Related Federal Cases
- Michael Conway, Wire Fraud, New Jersey 2016 · Pennsylvania
- Vadym Iermolovych, International Securities Fraud, New Jersey 2024 · Pennsylvania
- Paul J Mathieu, Medicare and Medicaid Fraud, New Jersey 2024 · Pennsylvania
- Sukha Singh Boyal, Passport Fraud, New Jersey 2024 · Washington
- Wellington Feliz, IRS Refund Fraud, New Jersey 2023 · Puerto Rico
Key Facts
- State: New Jersey
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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