Atlanta couple indicted for millions in Economic Impact Disaster Loan Program fraud
ATLANTA (STL.News) Paul Kwak and Michelle Kwak have been indicted on charges arising out of a scheme to defraud the U.S. Small Business Administration by filing fraudulent applications in the Economic Impact Disaster Loan (“EIDL”) Program. Congress created EIDL as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act to help businesses weather the economic impact of the coronavirus pandemic.
“Fraudulent applications divert the limited pool of funds Congress allocated for pandemic relief from legitimate businesses in need of assistance,” said Acting U.S. Attorney Kurt R. Erskine. “By defrauding the Small Business Administration, the defendants harmed hardworking business owners whom the CARES Act was intended to help.”
“This alleged fraud is especially concerning because it takes advantage of a federal program set up to assist legitimate small businesses who need assistance to survive during a pandemic,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is especially vigilant of such abuse and are making it a priority to make sure government assistance goes only to those who deserve it.”
“Lying to gain access to economic stimulus funds will be met with justice,” SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite.