A federal jury in Detroit today found a Michigan man guilty of using the Coronavirus Aid, Relief, and Economic Security (CARES) Act to obtain more than $4.1 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loans guaranteed by the Small Business Administration (SBA).
According to court documents and evidence presented at trial, Johnny Ho, 41, of Novi, conspired to submit false PPP and EIDL loan applications in order to acquire COVID-19 relief money to which he was not entitled.
Ho, the owner of Diva Nails & Spa III LLC in Northville, submitted inflated payroll figures and otherwise false loan application information, according to the evidence.
Ho submitted two fake PPP and EIDL loan applications totaling roughly $350,000 in money to assist small businesses and their employees affected by the COVID-19 outbreak. Ho and his accomplices submitted a total of 29 false PPP and EIDL loan applications on behalf of 16 firms totaling more than $4.1 million.
One count of conspiracy to commit wire fraud, two charges of wire fraud, and two counts of money laundering were found against Ho. He faces up to 20 years in prison for each of the wire fraud counts and up to 10 years in prison for the money laundering offenses when he is sentenced on Sept. 27.
After considering the US Sentencing Guidelines and other statutory criteria, a federal district court judge will impose any sentence.
The announcement was made by Justice Department Assistant Attorney General Kenneth A. Polite, Jr., U.S. Attorney Dawn Ison for the Eastern District of Michigan, FBI Special Agent in Charge James A. Tarasca of the Detroit Field Office, and Special Agent in Charge Sharon Johnson of the SBA-Office of Inspector General (SBA-OIG).
The FBI and the SBA-OIG examined the case.
The case is being prosecuted by Trial Attorney Patrick J. Suter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ryan A. Particka of the Eastern District of Michigan.
The Attorney General established the COVID-19 Fraud Enforcement Task Force on May 17, 2021, to mobilize the Department of Justice’s resources in collaboration with other government agencies to improve efforts to combat and prevent pandemic-related fraud.
By augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts, the Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud. For additional information on the department’s pandemic response, go here.