A software engineer in Washington state has been charged with fraudulently taking more than 1.5 1.5 million in coronavirus relief funds for small business loans. Prosecutors announced Friday.
Baok Zhang, 35, a resident of Iskakar, is accused of filing an application for a loan secured by the Small Business Administration (SBA) under the Coron Virus Assistance, Relief and Economic Protection Act (CARES).
According to the complaint, Zhang sought relief funds by claiming fake pay-roll expenses to his non-existent information technology companies.
It is alleged that Zhang submitted fake documents to two separate banks in support of SBA’s application for concessional loans through the Peng Check Protection Program (PPP).
The fake IRS documentation planned to show the sole proprietorship federal tax holdings in his name for 25 employees. To show that his businesses lasted longer than they actually did, Zhang complained that the IRS had assigned Employer Identification Number (EIN) for his business – a 2017 and a 2018 The IRS actually allocated an EIN number for each of his businesses last month – Zhang Some time before submitting the application.
Assistant Attorney General Brian A. “Defendant submitted false documents to a daring project to obtain more than 1.5 1.5 million in loan funds available for legitimate business adversely affected by COVID-19,” Benkowski said. “The department and our law enforcement partners will continue to identify and prosecute those who commit fraud in the Care Act program.”
Zhang faced allegations of wire fraud and bank fraud. It was not immediately clear if there was a lawyer who could speak for him.
Isakawah is about a 20-minute drive southeast of Seattle
U.S. lawmakers The Cares Act was passed last March Provide emergency financial assistance to individuals and businesses affected by the economic impact of the coronavirus epidemic.
Bill set aside 9349 billion Through PPP, small businesses can get concessional loans for job retention and expenses.
Lawmakers have approved more than that $ 300 billion Additional funding from the PPP in April.