ANOTHER PPP FRAUD CASE

 

We get many questions regarding federal PPP Loans.  plan. If you or someone you know have issues regarding PPP loans or have discovered PPP loan fraud, please contact us here. 

 

The Payment Protection Plan federal loan program was implemented to protect small businesses from the unprecedented impact of the Covid-19 virus. It encouraged companies to retain employees to prevent massive layoffs. Many companies took advantage of the grants and low-interest loans to keep most of their employees--Some ripped it off. 

 

Another fraud case involving the PPP Loan program is underway. The case involves Sheng-Wen Cheng, a Taiwanese nationalist and Penn State graduate. Cheng, a self-proclaimed “serial entrepreneur,” submitted online applications for the PPP program from April to Augustof over $7 million. 

 

Cheng represented that his companies had over 200 employees and payroll was $1.5 million each month. His companies really have 14 employees. In all, Cheng received $2.8 million into bank accounts connected to him. Instead of using these funds for their intended purpose, Cheng went on a spending spree and lived the high life while the rest of the world suffered due to Covid-19. 

 

Cheng transferred $881,000 to offshore bank accounts of different people and businesses in Taiwan, the United Kingdom, South Korea, and Singapore. Along with the large cash payouts, Cheng purchased a luxury condo, a 2020 S560X4 Mercedes, and spent lavishly on clothes and furniture.

 

Cheng, a New York resident, was arrested and faces multiple charges. He could face over forty years in prison.. This has not been the first PPP loan fraud case in this country, we recently wrote about a Miami fraud case. For a more detailed account of the events surrounding Cheng’s arrest, visit the United States Department of Justice’s website

 

 At the Law Offices of Warner Mendenhall, we fight against fraud to recover funds for the taxpayers under the Federal False Claims Act “qui tam” whistleblower provisions. Initial consultations are free.