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Georgia couple indicted in COVID-19 aid defraud scheme investigation
By FOX 5 Digital Team
Published
BRASELTON, Ga. - A federal jury has indicted an Atlanta couple accused of using fraudulent applications to defraud the government out of millions of dollars in COVID-19 aid.
Officials with the U.S. Attorney s Office say 63-year-old Paul and 60-year-old Michelle Kwak planned to submit applications for Economic Impact Disaster Loans using the names of shell companies that had no employees and no business activities.
The Kwaks are believed to be connected to 70 fraudulent applications resulting in $4 million in loans. Fraudulent applications divert the limited pool of funds Congress allocated for pandemic relief from legitimate businesses in need of assistance, said Acting U.S. Attorney Kurt R. Erskine. By defrauding the Small Business Administration, the defendants harmed hardworking business owners whom the CARES Act was intended to help.