A resident of California has been sentenced to almost four years in prison for his role in a Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) fraud scheme.

According to the U.S. Department of Justice (DOJ), Abraham Park of La Mirada, California, submitted over 120 fraudulent SBA EIDL applications worth $12 million from 2020-2022.

“Park was the owner and CEO of a California financial services company that assisted clients with obtaining financing, including loans, and repairing credit scores. After the COVID-19 pandemic started, Park advised his clients to create fictitious corporate entities so that he could submit fraudulent EIDL loan applications to the SBA on their behalf. In return, his clients paid Park a portion of the funded loans as a kickback. In addition to submitting applications for his clients, Park also submitted several applications for himself and his family members for fictitious entities.”

Park successfully collected 73 fraudulent loans, stealing nearly $7 million from the disaster assistance initiative.

Park previously pleaded guilty in March to one count of wire fraud and one count of money laundering.

Yesterday, the DOJ announced that a formerly married CEO and President of a Hawaii-based shipbuilding firm received a combined 15-year prison sentence for a $29 million investor fraud scheme.

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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A resident of California has been sentenced to almost four years in prison for his role in a Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) fraud scheme.

According to the U.S. Department of Justice (DOJ), Abraham Park of La Mirada, California, submitted over 120 fraudulent SBA EIDL applications worth $12 million from 2020-2022.

“Park was the owner and CEO of a California financial services company that assisted clients with obtaining financing, including loans, and repairing credit scores. After the COVID-19 pandemic started, Park advised his clients to create fictitious corporate entities so that he could submit fraudulent EIDL loan applications to the SBA on their behalf. In return, his clients paid Park a portion of the funded loans as a kickback. In addition to submitting applications for his clients, Park also submitted several applications for himself and his family members for fictitious entities.”

Park successfully collected 73 fraudulent loans, stealing nearly $7 million from the disaster assistance initiative.

Park previously pleaded guilty in March to one count of wire fraud and one count of money laundering.

Yesterday, the DOJ announced that a formerly married CEO and President of a Hawaii-based shipbuilding firm received a combined 15-year prison sentence for a $29 million investor fraud scheme.

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The post California Man Sentenced for Defrauding $12,000,000+ From the Small Business Administration’s Disaster Loans Program appeared first on The Daily Hodl.