From the United States Attorney's Office - Southern District of New York:
Chinese National Arrested For $20 Million Scheme To Fraudulently Obtain Loans Intended To Help Small Businesses During COVID-19 Pandemic
... ... ... announced today the arrest of MUGE MA, a/k/a “Hummer Mars,” a Chinese national residing in Manhattan, for a fraudulent scheme to obtain over $20 million in Government-guaranteed loans designed to provide relief to small businesses during the novel coronavirus/COVID-19 pandemic. In connection with loan applications for relief available from the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”) Program, MA falsely represented to the SBA and five financial institutions that his companies, New York International Capital LLC (“NYIC”) and Hurley Human Resources LLC (“Hurley”), had hundreds of employees and paid millions of dollars in wages to those employees, when, in fact, MA appears to have been the only employee of his companies. MA’s company NYIC also fraudulently represented that it was representing New York State in procuring COVID-19 test kits and personal protective equipment to respond to the COVID-19 pandemic. MA was arrested this morning and will be presented later today before U.S. Magistrate Judge Kevin Nathaniel Fox.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Muge Ma, a/k/a ‘Hummer Mars,’ allegedly attempted to secure over $20 million in Government-guaranteed loans intended for businesses devastated by the coronavirus/COVID-19 pandemic. In furtherance of the scheme, Ma allegedly falsely represented in his applications to banks and the SBA to own two companies with hundreds of employees to whom he paid millions in wages. As alleged, Ma described one of the companies as a ‘patriotic American’ firm, and said of the other company that it would ‘help the country reduce the high unemployment rate caused by the pandemic by helping unemployed American workers and unemployed American fresh graduates find jobs as quickly as possible.’ In truth, Ma appears to be the only employee of either company and had no legitimate claim to the funds for which he applied. Ma’s alleged attempts to secure funds earmarked for legitimate small businesses in dire financial straits are as audacious as they are callous, and now he now faces federal prosecution. Small businesses are facing uncertainty and unprecedented challenges, the least of which should be opportunists attempting to loot the federal funds meant to assist them. This Office, along with our law enforcement partners, will continue to vigilantly protect the integrity of those critical loan programs.”
You have to admit that he has big brass ones - takes a lot of chutzpah to try to pull off something that large and ill thought out.
My concern is that the New York State Small Business Administration is so behind the times that Ma thought that they would fall for his scam. Wonder how many other scams are being run right now akin to the Seattle / Nigerian one that just came to light. If these scams are being run, it will be interesting to correlate their operation with the political party running the state. So far, we are two-for-two - Scam and Democrat. Any Republican states with scams of this magnitude running? Educate me.
Leave a comment