Home North Pole Economy New Jersey Lawyer Issued Nearly $ 9 Million In PPP Loans, Purchased Home And Invested In Stock Market, DOJ Says | Zoom Fintech

New Jersey Lawyer Issued Nearly $ 9 Million In PPP Loans, Purchased Home And Invested In Stock Market, DOJ Says | Zoom Fintech

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A New Jersey lawyer was indicted Tuesday on a number of counts of bank fraud for allegedly acquiring $ 9 million in loans from the Federal Paycheck Security Program (PPP).

Jae H. Choi from Bergen County submitted 4 fraudulent purposes for PPP loans to 4 lenders on behalf of 4 companies that were mentioned to offer university companies, in accordance with the documents filed and statements made in the court record. He allegedly lied about the existence of a whole bunch of on-demand employees, manipulated bank data and falsified a driver’s license, all while claiming that these companies paid more than $ 3 million in monthly wages.

On only one occasion, Choi falsely claimed in an email to a lender that he had informed 150 of his employees that they were at risk of losing their jobs due to the lack of PPP loans. He wrote that he had “watched adult women and men cry” and added that he “sincerely hopes[d]”That the employee of the lender” would not discover in any case [himself] in this kind of scenario.

Three of the four lenders provided Choi with PPP loans estimated at $ 3 million for three of the companies.

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Court documents also indicate that Choi invested the $ 9 million in federal funds provided to him in a $ 1 million residence in Cresskill, New Jersey; used approximately $ 30,000 for the redevelopment and improvement of the residence; and invested hundreds of thousands of additional dollars in the stock market using an account held in his partner’s name.

He has been charged with 4 counts of bank fraud, 4 counts of misrepresenting loan software, one for aggravated identity theft and one for money laundering, according to US lawyer Craig Carpenito and assistant by Common Lawyer Brian C. Rabbitt of the Legal Division of the Justice Division. The indictment calls for the confiscation of 11 bank accounts, one fundraising account and the million dollar residence.

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Passed in March, the CARES law was created to financially assist hundreds of thousands of people who have experienced financial hardship due to the coronavirus pandemic. Up to $ 349 billion in forgivable loans have been applied under the CARES Act, funding the bills of struggling small businesses through the PPP. In April, Congress authorized the addition of more than $ 300 billion to P3 funding.

Qualifying small businesses should use these loans for payroll, mortgage, rental, and utilities to ensure they are forgiven within a set time frame.

The case was investigated by the IRS-Legal Investigative Officer in particular Cost Michael Montanez; inspectors from the US Postal Inspection Service; the place of work of the Small Business Administration of the Joint Inspector; and the Social Security Administration – Place of work of the joint inspector.

An indictment date for Choi has yet to be set.

News week contacted the Justice Division for a remark, but did not get a response in time for the publication. It is not known whether or not Choi has a lawyer.

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