DOJ reported two local massive fraud cases in 2021. Bellevue and Issaquah men were found guilty.
White collar crime of massive proportions have unfortunately committed among us. Two cases reported by the U.S. Department of Justice this year show the greed of two men, one a Director of Global Product Support of Bellevue and the other a business owner in Issaquah.
One of the men got greedy trying to get away with applying for $1.1 million for disaster loans obtaining Covid-19 relief funds.
According to a Kiro7 News report, Austin Hsu, 46, of Issaquah, was sentenced to two years in prison and fined $25,000 and a whopping $709,104.97 in restitution after pleading guilty to the fraud.
Hsu owned the company called Back 2 Health Bellevue (Back 2 Health) and applied for Paycheck Protection Program (PPP) loans using the names of current and former employees under the names of four other companies that he owned and controlled, according to the Department of Justice news (1/21/2021).
He also incorporated another company in June, 2020, in order to apply for a Economic Injury Disaster Loan (EIDL).
In the process of the fraud that goes along with his company multiple frauds, Hsu filed frauded federal tax forms.
Searching the DOJ site produced another fraud on an employer by a Bellevue man (6/4/2021). Arunkumar Singal, 42, was a former manager of a medical device company who plead guilty to wire fraud on January 3, 2020.
Singal defrauded his company, Spacelabs Healthcare Inc. located in Snoqualmie, of $780,000 in profits, by creating a shell company to sell products to a Texas company charging a 10% profit that he kept for himself.
He was able to pay off his "luxury Mercer Island home" and purchase a Tesla.
Singal's plea deal involved his paying restitution to Spacelabs in the amount of $780,163 and serving a three-year prison sentence.
Singal will likely be deported back to India where he is a citizen.