Home Cryptocurrency News San Jose man allegedly bought cryptocurrency, Tesla with PPP loan

San Jose man allegedly bought cryptocurrency, Tesla with PPP loan

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SAN JOSE — A person was arrested after authorities say he fraudulently took benefit of federal pandemic reduction packages, illicitly gaining about $2 million {dollars} which he used to purchase cryptocurrency, buy a Tesla and dine at eating places.

In response to the U.S. Legal professional’s Workplace for the Northern District of California, 40-year-old Lebnitz Tran, of San Jose, allegedly submitted 27 phony purposes to the Paycheck Safety Program and a minimum of seven purposes to the Financial Harm Catastrophe Mortgage program, each of which have been established to assist companies throughout the nation climate the monetary storms of the coronavirus pandemic.

Tran is accused of working up purposes “on behalf of a number of individuals and enterprise entities, utilizing false and fictitious data and paperwork, together with falsified worker data, fictitious or grossly exaggerated payroll figures, and faux tax paperwork.”

A federal indictment claims Tran sought greater than $8 million in all throughout his scheme, and obtained over $3.6 million in loans, and in the end got here away with about $2 million.

“Tran and others used these illicit mortgage proceeds to make purchases at eating places and retail shops, make deposits into private funding accounts, purchase cryptocurrency, and, in a single occasion, to buy a $100,000 Tesla from a luxurious automobile dealership,” a press release from the U.S. Legal professional’s Workplace stated.

Tran is being charged with six counts of wire fraud and three counts of financial institution fraud. If convicted, he might face a most penalty of 30 years in jail for every depend of financial institution fraud, and 20 years in jail for every depend of wire fraud, authorities stated.

The FBI and the Small Enterprise Administration’s Workplace of Inspector Normal are investigating the case, below the umbrella of the federal COVID-19 Fraud Enforcement Job Drive.


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