Covid Cash Fraud: CEO Sentenced for $7M Scam

A Major Financial Scandal During the Pandemic

A California financial executive has been sentenced to nearly four years in prison after being found guilty of stealing millions in federal coronavirus relief funds. The individual, Abraham Park, a 67-year-old from La Mirada, was involved in a large-scale fraud that exploited a government program designed to support small businesses during the pandemic. Instead of offering genuine assistance, Park orchestrated a scheme that resulted in the loss of nearly $7 million in taxpayer money.

Exploiting the Economic Injury Disaster Loan Program

From March 2020 to October 2022, Abraham Park submitted over 120 fake loan applications to the Small Business Administration (SBA) under the Economic Injury Disaster Loan (EIDL) program. This initiative was created to provide aid to real businesses facing financial hardship due to the pandemic. However, Park took advantage of this system for personal gain.

As the owner and CEO of a financial services company in California, Park claimed to help clients obtain loans and improve their credit. When the pandemic hit, he advised clients to create fake business entities so he could submit fraudulent EIDL applications on their behalf. Once the loans were approved, he took a portion of the money as a kickback.

Fraudulent Applications and Personal Gain

The scheme went beyond assisting clients. Park also submitted applications for himself and his family members, all based on fictitious companies. In total, 73 of these fraudulent loan applications were approved, resulting in a loss of nearly $7 million to the SBA. The overall damage from both approved and unapproved loans reached over $12 million.

Many of Park’s clients trusted him to guide them through the loan process. Unfortunately, he led them into illegal activity by creating fake documents, fake business details, and coaching others to do the same. These actions not only harmed the government but also put his clients at legal risk.

In return for his assistance in the fraud, Park demanded a portion of the loan money once it was paid out. He even prepared and filed applications using fake details for his relatives. The stolen funds, which came from emergency federal aid, were meant to support small businesses, not enrich individuals committing fraud.

Legal Consequences and Repayment

In March 2025, Abraham Park pleaded guilty to one count of wire fraud and one count of money laundering. He has now been sentenced to 46 months in federal prison. In addition to the prison term, Park must repay $6,993,700 in restitution and surrender $535,041 in forfeited assets gained through the scam.

Federal Agencies Investigate the Case

The case was investigated by multiple federal agencies, including the IRS Criminal Investigation (IRS-CI), led by Special Agent in Charge Tyler Hatcher, and the FBI’s Los Angeles Field Office, under Assistant Director in Charge Akil Davis. The SBA Office of Inspector General, with Western Region Acting Special Agent in Charge Jonathan Huang, also played a key role in uncovering the fraud.

The sentence was announced by Acting Assistant Attorney General Matthew R. Galeotti of the Department of Justice’s Criminal Division. The case was prosecuted by Trial Attorneys Brandon Burkart and Andrew Jaco of the Criminal Division’s Fraud Section.

Broader Efforts to Combat Fraud

This prosecution is part of the Department of Justice’s broader efforts to hold accountable those who misused pandemic relief programs. Since the CARES Act began, the Fraud Section has prosecuted more than 200 individuals in over 130 cases, recovering over $78 million in fraudulently obtained funds—as well as real estate and luxury goods bought with stolen money.