Merrick B. Garland, Attorney General | https://www.justice.gov/
Merrick B. Garland, Attorney General | https://www.justice.gov/
Three brothers from Georgia have been sentenced to federal prison for their involvement in a $2.8 million COVID-19 fraud scheme. William Chan, 40, and Siu Chan, 32, pleaded guilty to wire fraud conspiracy charges, while Ka Ho Chan, 33, admitted guilt to two counts of wire fraud. The trio and other family members run several restaurants in the Charleston area.
The investigation revealed that starting in March 2020, the Chans applied for Paycheck Protection Program (PPP) and Emergency Injury Disaster Loans (EIDL) funds using false information and fraudulent documents. William and Siu Chan were found to have applied for at least 22 loans totaling more than $2.5 million. Although some applications were legitimate, the funds were not used for business purposes but instead for personal expenses like car purchases and credit card payments.
Ka Ho Chan faced separate charges related to an EIDL loan and grant he received fraudulently. His plea agreement included restitution between $300,000 to $350,000 due to receiving fraudulent loan proceeds facilitated by his brothers during their conspiracy. Like his siblings, Ka Ho used the funds for personal expenses.
"These defendants exploited a program intended to help struggling businesses during a critical time," said Acting U.S. Attorney Brook B. Andrews for the District of South Carolina. "Their greed led them to defraud the government and taxpayers."
Steve Jensen, Special Agent in Charge of the FBI Columbia field office stated: “We will not tolerate those who exploit programs designed to support small businesses.”
U.S. District Judge Richard M. Gergel sentenced William and Siu Chan each to 24 months imprisonment followed by three years of supervision; Ka Ho Chan received a sentence of 12 months plus one day with similar supervised release terms.
The court ordered restitution totaling $1,268,386.50 as efforts had been made by the brothers prior to sentencing.
This case was part of efforts under the COVID-19 Fraud Enforcement Task Force established on May 17, 2021 by the Attorney General to combat pandemic-related fraud.
Information about attempted COVID-19 fraud can be reported via the Department of Justice’s National Center for Disaster Fraud Hotline or web form.
The FBI Columbia Field Office along with Small Business Administration investigated this case with Assistant U.S. Attorney Amy Bower prosecuting it.
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