A Southern California man, Abraham Park, age 67 of La Mirada, was handed down a sentence of nearly 4 years in prison for defrauding the government out of millions in small business loans during the pandemic. According to a KTLA report, Park orchestrated a scheme that targeted the Economic Injury Disaster Loan (EIDL) Program, resulting in over $6.9 million in fraudulently obtained funds.
Park, the owner of a financial services company, leveraged the pandemic's chaos, working from March 2020 through October 2022, to submit over 120 fraudulent applications, detailed by court records. Reported by the Department of Justice, Park advised his clients to create fake entities to boost his fraudulent EIDL loan applications to the SBA. Unbeknownst to the SBA, the loans that Park helped his clients obtain were courtesy of false representation.
On March 20, Park pleaded guilty to wire fraud and money laundering counts in a bid to resolve the allegations of fraudulent activity that landed him in deep legal trouble. He was subsequently sentenced on August 7 to serve 3 years and 10 months in prison. Moreover, Park is ordered to pay back nearly $7 million in restitution and forfeit an additional $535,041 as per the sentencing details revealed by KTLA's coverage.
Acting Assistant Attorney General Matthew R. Galeotti, along with other federal officials, confirmed numerous criminal charges prosecuted as part of the CARES Act enforcement. More than 200 defendants faced prosecution in over 130 criminal cases, with seizures exceeding $78 million in proceeds from fraud-related PPP funds—officials announced via a statement from the DOJ. Real estate and luxury items purchased with these fraudulent funds were also seized, in a substantial effort to crack down on pandemic fraud.
Authorities have continued to encourage the public to report fraud cases, emphasizing the importance of transparency and honesty in financial dealings, especially during times of crisis. More information on how to report such fraudulent activities can be found on respective government websites, as federal agencies remain vigilant against such illicit transactions that dent the public coffers, as referenced by the announcements made by the IRS-CI, FBI, and SBA-OIG in the aftermath of Park's sentencing.
