LOS ANGELES
A Koreatown rideshare driver has been arrested on federal charges alleging he fraudulently obtained more than $2 million in COVID-19 relief loans for nonexistent businesses and used the money to buy cryptocurrency, the Justice Department stated .
Bruce Choi, 34, was arrested Tuesday at San Francisco International Airport after arriving from Japan.
Choi is presumed innocent unless proven guilty.
He faces four counts of wire fraud affecting a financial institution and one count of transactional money laundering. He is expected to make an initial appearance in federal court in San Francisco, with arraignment in Los Angeles to follow.
Key facts:
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Alleged scheme: May 2020 to December 2024
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Fraud amount: More than $2 million in pandemic-relief funds
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PPP loan: $1,995,000 obtained using a fictitious company, “Premier Republic”
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False claims: Nearly $798,000 monthly payroll; $11.8 million in 2019 revenue
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EIDL application: Claimed a separate business with 10 employees and $475 million in revenue — also nonexistent
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Use of funds: Transferred to a cryptocurrency exchange account
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Assets seized: Nearly 40 bitcoins and other cryptocurrency
Prosecutors allege Choi submitted fake tax returns and bank statements to support loan applications. In one instance, he listed transactions during a nonexistent period in February 2020.
If convicted, Choi faces up to 30 years in prison for each wire fraud count and up to 10 years for the money laundering charge.
An indictment contains allegations, and the defendant is presumed innocent unless proven guilty.