Eight Charged in PPP Scheme in California

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merchant cash advance fraudAnother alleged SBA fraud scheme has met its end after eight defendants were recently charged in the Eastern District of Pennsylvania. The group netted $7 million in Paycheck Protection Program loans, Economic Injury Disaster Loans, and pre-pandemic Small Business Administration loans. Defendants Frank Hamilton, Michael Jones, Tina Chen, Kenny Tran, Tim Park, Peter An, Joseph Greco, and Edwin Bonilla are all California residents.

Specifically for PPP loans, the conspirators allegedly created transactions designed to give the appearance that the funds were being used for payroll. However, the companies had no payroll and no business activities. As part of the scheme, they allegedly created fake bank statements and false tax documents to prove legitimacy. The defendants are being charged with conspiracy to commit wire fraud and face up to 20 years in prison if convicted.

Last modified: June 24, 2022
Anaya VanceAnaya Vance is a reporter for deBanked. Connect with me on LinkedIn.

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