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Date: 01-22-2021
Case Style:
Case Number: 2:20-cr-00191-JLR
Judge: James L. Robart
Court: United States District Court for the Western District of Washington (King County)
Plaintiff's Attorney: United States District Attorney’s Office
Defendant's Attorney:
Description: Seattle, Washington fraud charge lawyer represented Austin Hsu, age 46, who was charged with one count of wire fraud. He was charged with perpetrating a scheme to fraudulently obtain COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
, Hsu admitted that he submitted nine fraudulent disaster loan applications seeking over $1.1 million. Hsu, who is the owner and CEO of a company named Blackrock Services P.S. doing business as “Back 2 Health Bellevue” (Back 2 Health), received EIDL and PPP funds for Back 2 Health, and then used the names of Back 2 Health’s current and former employees to apply for additional PPP loans under the names of four other companies that he owned and controlled. Hsu further admitted that, in support of the fraudulent PPP loan applications, Hsu submitted fake federal tax filings.
Hsu also admitted that he incorporated a company named Blueline Capital LLC (Blueline) in June 2020 for the purpose of applying for an EIDL loan in July 2020, and then misrepresented to the SBA that Blueline had been in business since 2017 and that, as of Jan. 31, 2020, Blueline had nine employees and gross receipts of over $1.5 million. Hsu admitted that, in truth, Blueline had no business or operations.
Six of Hsu’s nine fraudulent loan applications were approved, and he fraudulently obtained more than $700,000 in COVID-19 relief funds.
Outcome: Defendant pleaded guilty to COVID-19 Relief Fraud.
Plaintiff's Experts:
Defendant's Experts:
Comments: