A California man is heading to prison for nearly four years after defrauding the Small Business Administration (SBA).
The Scheme
Abraham Park, CEO of a California financial services company, orchestrated a massive loan scam. Between 2020 and 2022, he submitted over 120 fake loan applications to the SBA’s Economic Injury Disaster Loan (EIDL) program, totaling a staggering $12 million. Park helped his clients create phony businesses to apply for these loans, pocketing a share of the money as a kickback. He also submitted applications for himself and his family using fake companies.
The Verdict
Park successfully obtained 73 fraudulent loans, stealing almost $7 million in disaster relief funds. He pleaded guilty to wire fraud and money laundering earlier this year and was recently sentenced.
Another Major Fraud Case
The Department of Justice also announced a separate case involving a Hawaii shipbuilding company’s CEO and President, who received a 15-year sentence for a $29 million investor fraud.
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