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Friday, May 14, 2021

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Home Business & Finance ICO fraudster pleads guilty to $7m Covid-relief loan scam

ICO fraudster pleads guilty to $7m Covid-relief loan scam

Document Analysis NLP IA

383
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1:54
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neutral
sentiment

Sentiment0.00053339517625231
objective
redaction

Subjectivity0.338597711812
probably it's an affirmation
Affirmation0.4

Highlights

RELEVANT
FREQ, RAKE or TFIDF
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ORG
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PERSON
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Key Concepts (and relevance score)

Summary (IA Generated)

A 24-year-old New York resident has pleaded guilty to acquiring more than $7 million in Covid-19 relief through fraudulent loan applications and misleading investors in a fraudulent initial coin offering during 2018.

S.

Department of Justice, Taiwanese national, Justin Chengalso known as “Justin Jung” — Cheng submitted a series of online loan applications accompanied by forged tax and payroll records between May and August of last year.

Cheng’s applications featured fraudulent IRS tax and payroll records purporting to document the names of 200 employees earning $1.

”.

Cheng was successful in securing $7 million worth of covid-relief for his fictitious employees, which was reportedly spent on personal expenses including a $40,000 Rolex, rent for a $17,000 a month apartment, and 2020 Mercedes.

“Cheng lied to the SBA and several banks about ownership of his companies, the number of people employed, and how any loan proceeds would be applied, using forged and fraudulent documents in the process.

In 2018, Cheng solicited investors to participate in the ICO for his company, Alchemy Coin Technology Limited, while making false statements about the firm’s finances and readiness of its peer-to-peer lending platform, and failing to disclose the ICO was an unlicensed offering.

“These investments were obtained through materially false and misleading statements and omissions regarding Alchemy Coin’s access to capital, use of investor proceeds, the product readiness of its purported blockchain-based peer-to-peer lending platform, and the registration of its tokens as part of an initial coin offering.


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