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Chinese man gets over 4 years in prison for pandemic fraud

Authorities said the accused man falsely claimed to be paying hundreds of employees millions of dollars in wages through two companies he controlled. To support the claims, he submitted fraudulent bank, tax, insurance and payroll records and provided banks with links to websites that described the companies as “global,” prosecutors said. 

AP Reported by: AP New York Published on: April 22, 2022 20:01 IST
China, Covid19, Coronavirus, man sentenced to prison for pandemic fraud, New York state, Paycheck Pr
Image Source : AP

Commuters wearing face masks walk in a subway station in Beijing. 

Highlights

  • Chinese man sentenced to more than four years in prison due to pandemic fraud
  • The judge said the prison term was necessary because of the seriousness of the crimes
  • Authorities said he falsely claimed to be paying hundreds of employees millions of dollars in wages

A Chinese man was sentenced to more than four years in prison on Thursday after admitting that he fraudulently tried to get $20 million in federal coronavirus-relief funds meant to rescue distressed businesses. U.S. District Judge Richard M. Berman announced the four-year, four-month prison term for Muge Ma at a sentencing hearing in Manhattan. The judge said the prison term was necessary because of the seriousness of the crimes and the need for others to be warned against abusing government programs meant to help people in a national emergency.

Ma, 38, was arrested in May 2020 by federal authorities who said he had applied to at least five banks to try to get over $20 million in government-guaranteed loans from the Paycheck Protection Program and the Economic Injury Disaster Loan program. Both programs were designed for businesses harmed by coronavirus shutdowns.

Authorities said he falsely claimed to be paying hundreds of employees millions of dollars in wages through two companies he controlled. To support the claims, he submitted fraudulent bank, tax, insurance and payroll records and provided banks with links to websites that described the companies as “global,” prosecutors said. In fact, they said, Ma at the time was working alone out of his $1.5 million Manhattan condominium, falsely claiming that one of his companies was representing New York state and was helping then-Gov. Andrew Cuomo to procure COVID-19 test kits and personal protective equipment for frontline workers.

Ma, a lawful permanent resident jailed since his May 2020 arrest, repeatedly said he was sorry before the sentence was imposed. He came to the U.S. in 2011 on a student visa. “I love America,” Ma said. “I’m very, very sorry to my country, America.” Besides decrying jail conditions over the last two years as “dirty, harsh, extremely cruel,” he repeatedly apologized for his crimes and said: “I detest myself so much.” The self-criticism reached such a point that Berman interrupted Ma, telling him: “Mr. Ma, I don’t have any doubt about how sorry you are.”

“I’m not seeking blood from you,” the judge said before he urged Ma to stop dwelling on his crimes and focus on how he can be successful in the future. Prosecutors said Ma’s fraud convinced one bank to approve and disburse over $800,000 in loan funds for one of Ma’s companies, although the money was frozen during the investigation. They said another $650,000 in loans had been approved and a $10,000 loan advance had been provided.

In a release Thursday, U.S. Attorney Damian Williams said Ma carried out his crimes within days of Congress authorizing billions of dollars to help small businesses harmed by the pandemic. “Muge Ma saw it as an opportunity to enrich himself by applying for millions of dollars in funds to pay wages to hundreds of employees that never existed,” Williams said.

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