Seattle (Associated Press)-A Seattle suburban man submitted nine fraudulent disaster loan applications for more than $1.1 million in federal COVID-19 relief and was sentenced to two years in prison on August 10.
According to the Seattle Times, 46-year-old Austin Hsu of Issaquah pleaded guilty to one count of wire fraud in January and pleaded guilty to applying for a small business loan under the Coronavirus Aid, Relief and Economic Security Act.
Federal prosecutors said that Hsu is the owner and chief executive officer of a chiropractic company called Back 2 Health Bellevue, who received funding from the financial injury disaster loan and salary protection program.
According to prosecutors in the U.S. Attorney’s Office, he subsequently used the names of current and former employees to apply for loans in the names of four other companies and submitted false federal tax documents.
Prosecutors said that six of Xu’s nine loan applications were approved, and he fraudulently obtained more than $700,000 in COVID-19 relief funds.
Hsu was also ordered to pay a fine of US$25,000 and compensation of approximately US$709,105.
