Authorities arrested Sheng-Wen Cheng, 24, a Taiwanese national (Representation)
New York:
U.S. prosecutors on Tuesday announced criminal fraud charges against a Taiwanese national who spent nearly $ 3 million on small business loans for a Rolex watch, Mercedes and other luxury items.
Authorities arrested Sheng-Wen Cheng, 24, and released details of an alleged scheme in which he claimed to be employees of numerous celebrities, professional athletes and other public figures, including one who had died.
The group included a TV co-presenter, a former National Football League player and a prominent Penn State football coach who died, a press release from the US Attorneys Office in New York said.
The defendant, also known as Justin Cheng, introduced his company as having more than 200 employees to get $ 7 million in federal programs, including the Small Business Administration’s Paycheck Protection Program (P3). .
In fact, Cheng companies had no more than 14 employees, the Justice Ministry said.
“While small business owners across the country have applied for loans from the Paycheck Protection Program to pay employee salaries and maintain basic business functions, Justin Cheng, an ‘entrepreneur in series ‘self-proclaimed, acquired more than $ 3 million in financial aid, which he then used for personal gain,’ said FBI Deputy Director William Sweeney Jr.
“This isn’t the first case of SBA fraud we’ve seen, and it won’t be the last, but rest assured that those who try to overthrow the system will face federal criminal charges wherever and whenever possible. “
The PPP was established as part of a massive federal relief plan earlier this year in response to coronavirus shutdowns. The program provides forgivable loans to small businesses to cover salaries and other essential expenses.
But the program has seen a number of stumbles since its hasty inception. There have also been previous criminal cases, including one involving a man from Texas who spent $ 200,000 in P3 funds on a Lamborghini.
In Cheng’s case, nearly $ 900,000 went to accounts in Taiwan, Britain, South Korea and Singapore.
Cheng’s expenses included $ 17,000 per month for a luxury condominium, $ 50,000 of furniture for the apartment and about $ 37,000 at Louis Vuitton, Chanel and other high-end retailers, the Ministry of Health said. Justice.
