Covid-19 pandemic fraud — COVID-19 Pandemic Fraud

NEWARK, N.J. — Federal authorities have recovered nearly $9 million in fraud and money laundering proceeds connected to a scheme involving Paycheck Protection Program loans, U.S. Attorney Alina Habba announced Wednesday.

On May 14, U.S. District Judge Michael E. Farbiarz entered a final judgment forfeiting approximately $7 million in U.S. currency and a property in Cresskill, New Jersey, valued at nearly $2 million. The judgment follows a civil forfeiture complaint filed in May 2024.

According to the complaint, between April and August 2020, Jae H. Choi fraudulently obtained approximately $8.97 million in PPP loans. He then allegedly laundered the proceeds through various financial accounts held in the names of nominees, including a relative and several corporate entities under his control.

The U.S. Attorney’s Office said Choi used the funds for personal expenses and to purchase the Cresskill residence, which was also seized as part of the forfeiture action.

The forfeiture complaint alleged that the currency and real estate were directly tied to violations involving fraud and money laundering.

Multiple agencies credited in investigation

The investigation was led by special agents of the Internal Revenue Service – Criminal Investigation, with support from multiple federal agencies, including the Social Security Administration Office of Inspector General, the U.S. Postal Inspection Service, and the U.S. Small Business Administration Office of Inspector General.

U.S. Attorney Habba credited the interagency effort, noting the coordinated work across financial and fraud enforcement units. No criminal charges were announced in conjunction with the civil forfeiture action.

The forfeited funds and assets are expected to be returned to the U.S. Treasury.

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