LOS ANGELES - A Los Angeles rideshare driver is facing federal charges after allegedly orchestrating a $2 million scheme to defraud COVID-19 relief programs to fund cryptocurrency investments.
What we know:
Bruce Choi, 34, allegedly represented himself as the CEO of "Premier Republic," a fictional entity with no actual operations or employees, according to the U.S. Attorney's Office.
Prosecutors say he submitted fraudulent documents, including a fake 2019 tax return claiming nearly $11.8 million in gross receipts and a bank statement for the non-existent date of "February 31, 2020."
Through these fabrications, Choi successfully obtained a $1,995,000 Paycheck Protection Program (PPP) loan and a $10,000 Economic Injury Disaster Loan (EIDL) advance.
The funds were subsequently wired to a Kraken cryptocurrency exchange account, and federal authorities have since seized nearly 40 bitcoins, officials said.
Choi was arrested Tuesday at San Francisco International Airport after arriving on a flight from Japan.
What we don't know:
The specific details regarding Choi’s activities in Japan prior to his arrest have not been disclosed.
While the government has seized a significant portion of the cryptocurrency, it is unclear if the full $2 million in disbursed funds has been accounted for or recovered.
What's next:
Choi is scheduled to make his initial court appearance in San Francisco on Wednesday before being transferred to Los Angeles for his arraignment.
If convicted, Choi faces a statutory maximum of 30 years in federal prison for each count of wire fraud and 10 years for money laundering.
The Source: This report is based on information from a five-count federal indictment unsealed by the U.S. Attorney’s Office and official arrest records provided by the Department of Justice.