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Chinese National Arrested for $20 Million Loan Fraud
A Chinese national residing in Manhattan has been arrested for allegedly securing over $20 million in government-guaranteed loans intended for small businesses during the COVID-19 pandemic.
Muge Ma, also known as ‘Hummer Mars,’ was arrested this morning and will be presented later today before U.S. Magistrate Judge Kevin Nathaniel Fox.
According to the U.S. Attorney’s Office, Ma falsely represented to the SBA and five financial institutions that his companies, New York International Capital LLC (‘NYIC’) and Hurley Human Resources LLC (‘Hurley’), had hundreds of employees and paid millions of dollars in wages to those employees, when, in fact, Ma appears to have been the only employee of his companies.
Ma’s company NYIC also fraudulently represented that it was representing New York State in procuring COVID-19 test kits and personal protective equipment to respond to the COVID-19 pandemic.
Manhattan U.S. Attorney Geoffrey S. Berman said, ‘Muge Ma, a/k/a ‘Hummer Mars,’ allegedly attempted to secure over $20 million in Government-guaranteed loans intended for businesses devastated by the coronavirus/COVID-19 pandemic. In furtherance of the scheme, Ma allegedly falsely represented in his applications to banks and the SBA to own two companies with hundreds of employees to whom he paid millions in wages. As alleged, Ma described one of the companies as a ‘patriotic American’ firm, and said of the other company that it would ‘help the country reduce the high unemployment rate caused by the pandemic by helping unemployed American workers and unemployed American fresh graduates find jobs as quickly as possible.’
The FBI, SBA OIG, and IRS-CI are investigating the case. Berman added, ‘Small businesses are facing uncertainty and unprecedented challenges, the least of which should be opportunists attempting to loot the federal funds meant to assist them.’
The arrest serves as a demonstration to other criminals plotting a similar scam, said FBI Assistant Director William F. Sweeney Jr. ‘The last thing they need to hear is that a fraudster allegedly tried to steal millions of dollars for his own selfish use.’
SBA OIG Eastern Region Special Agent-in-Charge Kevin Kupperbusch said, ‘Providing false statements to gain access to SBA’s programs will be aggressively investigated by our office. SBA OIG and its law enforcement partners are poised to root out fraud in SBA’s programs and bring wrongdoers to justice.’
IRS-CI Special Agent in Charge Jonathan D. Larsen added, ‘As many American businesses are struggling to stay afloat during this pandemic, it’s unconscionable that someone would attempt to exploit these critical loan programs for their own gain.’
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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