The 24-year-old New Yorker pleaded guilty to receiving more than $ 7 million in COVID-19 assistance through credit fraud and misleading investors in a fraudulent ICO during 2018.
Taiwanese citizen Justin Cheng, also known as “Justin Jung,” filed a series of online loan applications with false tax reports and salaries between May and August last year, according to a statement from the US Department of Justice on Tuesday.
Cheng’s applications included false tax reports and payrolls with the IRS, which they claimed documented the names of 200 employees who received $ 1.5 million in monthly salaries from Cheng’s business. However, the list consisted of current and former public figures, including the late Good Morning America host, “a former Pennsylvania football coach.”
In addition to contacting at least five different banks, the fraudster submitted loan applications to the U.S. government’s payroll and disaster relief programs.
Cheng gave his phantom staff $ 7 million in COVID relief that was allegedly spent on personal expenses, including a $ 40,000 Rolex, $ 17,000 in monthly rent and a Mercedes in 2020. U.S. attorney Audrey Strauss said:
“Cheng lied to the Small Business Administration and several banks about the ownership of his companies, the number of employees, and how to handle any revenue by using fake and fake documents. Cheng spent a lot of money on personal luxury. Goods.”
He also pleaded guilty to a “serial contractor” who describes himself as carrying out a fraudulent ICO between August and October 2018 for his company.
In 2018, Cheng invited investors to join ICO in his company, Alchemy Coin Technology Limited, with false statements about the company’s finances and the readiness of the equalizing lending platform, and without revealing that ICO was an unlicensed offer. . … The Ministry of Justice stated:
“These investments were made through substantially false and misleading statements and omissions regarding Alchemy Coins’ access to capital, use of investor income, product readiness for the alleged blockchain-based peer-to-peer lending platform and ICO token registration. ”
District Judge Alison J. Nathan will hand down her sentence on August 3, when Cheng will face up to 80 years in prison.