US Expenses Alleged Fraudster With Pretend Superstar Staff

Authorities arrested Sheng-Wen Cheng, 24, a Taiwanese nationwide (Representational)

New York:

US prosecutors introduced Tuesday legal fraud expenses in opposition to a Taiwanese nationwide who spent almost $3 million in small enterprise loans on a Rolex watch, a Mercedes and different luxurious gadgets.

Authorities arrested Sheng-Wen Cheng, 24, and launched particulars of an alleged scheme during which he claimed as workers quite a few celebrities, skilled athletes and different public figures, together with one who was useless.

The group included a tv co-anchor, a former Nationwide Soccer League participant and a outstanding Penn State soccer coach who’s useless, mentioned a press launch from the US Attorneys workplace in New York.

The defendant, also called Justin Cheng, offered his firm as having greater than 200 workers to acquire $7 million from federal applications, together with the Small Enterprise Administration’s Paycheck Safety Program (PPP).

In actuality, Cheng’s enterprises had not more than 14 workers, the Justice Division mentioned.

“Whereas small enterprise homeowners all through the nation sought loans from the Paycheck Safety Program so as to pay worker wages and preserve fundamental enterprise capabilities, Justin Cheng, a self-proclaimed ‘serial entrepreneur,’ acquired greater than $3 million in monetary reduction, which he then used for private profit,” mentioned FBI Assistant Director William Sweeney Jr.

“This is not the primary case of SBA fraud we have seen, and it will not be the final, however relaxation assured those that attempt to buck the system will probably be met with federal legal expenses wherever and each time attainable.”

The PPP was established as a part of an enormous federal reduction plan earlier this 12 months in response to coronavirus shutdowns. This system grants forgivable loans to small companies to cowl salaries and different important bills.

However this system has had numerous stumbles since its rushed creation. There have additionally been earlier legal instances, together with one involving a Texas man who spent $200,000 in PPP funds on a Lamborghini.

In Cheng’s case, almost $900,000 was routed to accounts in Taiwan, Britain, South Korea and Singapore.

Cheng’s expenditures included $17,000 per-month for a luxurious condominium, $50,000 in furnishings for the residence and about $37,000 at Louis Vuitton, Chanel and different upscale retailers, the Justice Division mentioned.

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