A Washington state chiropractor on Thursday admitted to embezzling more than $ 700,000 from the Covit-19 relief fund to fight small businesses, federal prosecutors said.
Austin Hsu, 46, of Isakuva, pleaded guilty to a wire fraud and will be sentenced in April, according to a U.S. Justice Department report.
Authorities say he has submitted more than 1 million applications for nine fraudulent disaster loan applications under the Corona Virus Assistance, Relief and Economic Protection (CARES) Act.
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Hsu has already secured financial injury disaster loan and payroll plan loans for his company, Pack2Health, a comprehensive health center outside of Seattle.
He then used the names of current and former employees to apply for loans for four more companies, and admitted that he had filed a fake tax in support of his plan, the judicial report said.
In another attempt to raise funds, prosecutors said Hsu merged with a company in 2020. Initially he told the small business management that the company has had nine employees since 2017 and the total revenue is $ 1.5 million. However, Hsu later admitted to officials that the company had no business activities, officials said.
In total, six out of nine of Hsu’s fraudulent loan applications have been approved. Of the 1 1.1 million he searched for, 000 700,000 were given to him.
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“The CARES Act is a federal law passed on March 29. It is designed to provide emergency financial assistance to millions of Americans who are experiencing the economic consequences of the COVID-19 epidemic,” the report said.
The first case of corona virus in the United States was reported near Seattle a year ago. The area soon became the first viral hot spot in the United States.
Pack 2 Health did not immediately respond to requests for comment Friday morning. Hsu’s name is not listed under the “Meet the Team” section of the health center’s website, but online physician research sites list him as a chiropractor.