The COVID-19 Grant Heist
Meet Justin Cheng, a 24-year-old who decided that following the law during a global pandemic just wasn’t his thing. Instead, in a classic example of ‘you can’t make this stuff up’, he managed to snag over $7 million in COVID-19 relief funds using a series of online loan applications that were as much fiction as a Saturday night sci-fi flick.
Creative Fraud: Who’s Who on His Employee List?
Let’s start with the employee roster that Cheng cooked up. He claimed that 200 fictional staff members were earning a collective $1.5 million monthly through his businesses. The hilarity (or horror?) of it all is that Cheng pulled names from famous personalities—think Good Morning America co-hosts and even a deceased college football coach. If this was a game of charades, he would have won hands down!
Mastering Multitasking: Five Banks, Zero Ethics
Cheng wasn’t content with just one bank; oh no, he spread his net wide, applying to at least five different financial institutions. But wait, there’s more! He also applied for U.S. government relief through the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) programs. It’s like he was playing Monopoly, but instead of Mayfair, he was sweeping up all the cash!
Luxury Spending: The New Millionaire Lifestyle
Now, what do you do with all that money if you’re Cheng? Spoiler alert: not much of it went towards helping his imaginary employees. Instead, he splurged on the good life with luxury buys including a $40,000 Rolex (ever heard of a simple watch?), rent on a $17,000 apartment, and a shiny new 2020 Mercedes. Talk about priorities!
The ICO Debacle: Crypto Shenanigans
But Cheng’s fraudulent escapades didn’t stop at COVID relief. He also faced the music for running an initial coin offering (ICO) that was as transparent as a brick wall. Between 2018’s summer and fall, he was busy promising investors the moon regarding his company, Alchemy Coin Technology Limited. Spoiler alert: no moons were given, just a heap of lies about finances and product readiness.
In short, investors were left holding an empty bag, as it turned out the ICO was also unlicensed. In case you’re wondering, yes, there are rules about that sort of thing!
Sentencing: Countdown to Consequences
So, what’s next for our entrepreneur extraordinaire? As he awaits his sentencing set for August 3, Cheng faces a staggering potential prison term of up to 80 years. He’s truly living proof that crime doesn’t pay; or at the very least, it doesn’t pay in the way you hoped it would. With the gavel waiting to come down, we’ll see if Cheng’s dreams of grandeur will fade into a long-term stay at the slammer.
