Federal authorities charged a Seattle-area man on Tuesday with one rely of wire fraud after he submitted pretend functions for COVID-19 reduction packages.
Austin Hsu, a 46-year-old resident of Issaquah, Wash., illegally sought greater than $1.1 million from the Small Enterprise Administration’s Financial Damage Catastrophe Mortgage (EIDL) program and the Paycheck Safety Program (PPP), a part of the federal government’s CARES Act launched earlier this yr to help companies dealing with pandemic-related financial challenges.
In response to the complaint, Hsu obtained EIDL and PPP funds for his firm Blackrock Providers P.S., which does enterprise as Again 2 Well being Bellevue. He then used the names of his present and former staff to use for extra reduction loans by way of different corporations he owned. In complete, Hsu submitted 9 fraudulent functions for 5 completely different corporations, utilizing pretend tax filings and deceptive statements.
Hsu is scheduled to seem in court docket on Nov. 10. He’s the newest Seattle-area resident to be charged with COVID-19 reduction program fraud.
Baoke Zhang, a 35-year-old software program engineer, pled guilty last week to at least one rely of wire fraud. Mukund Mohan, a Seattle-area tech govt who hung out at Amazon and Microsoft, was charged in July.
The Justice Division mentioned final month it charged 57 folks with making an attempt to steal greater than $175 million from the PPP, The New York Times reported.
See the total criticism in opposition to Hsu under.