A Chinese national residing in the United States was arrested on multiple Federal fraud charges after he attempted to illegally obtain $20m, through COVID-19 small business loan programs. The defendant, MUGE MA, also known as HUMMER MARS, sought government-guaranteed loans "by means of false and fraudulent pretenses."He made false representations, alleging that some of his company's business possessed a vendor contract with the State of New York to supply test kits and personal protective equipment, when he was not a registered vendor.
Ma falsely claimed that he had hundreds of employees, and presented fraudulent and doctored banks records, tax record, insurance records, payroll records, and audited fonancial statements to five lender banks. He misrepresented himself as a US citizen, when he is only a permanent resident.
The charges filed thus far:
1. Bank Fraud.
2. Wire Fraud.
3. Making False Statements to a Bank.
4. Fraud against the United States.
5. Making Fale Statement to the Small Business Administration.
The total maximum sentence these counts carry is 107 years, according to the US Attorney's Office in New York.
Readers who wish to review the Sealed Criminal Complaint may access it here.
Contributed by Kenneth Rijock - Financial Crime Consultant
Chronicles of Monte Friesner - Financial Crime Analyst