Three brothers from Georgia who operate multiple restaurants in the Charleston area have been sentenced for their involvement in a multi-million-dollar COVID-19 fraud scheme.
William Chan (40), Siu Chan (32), and Ka Ho Chan (33) pleaded guilty to wire fraud-related charges, with William and Siu each facing wire fraud conspiracy charges, and Ka Ho pleading guilty to two counts of wire fraud.
Beginning in March 2020, the three brothers applied for and received funds from the Paycheck Protection Program (PPP) and Emergency Injury Disaster Loans (EIDL) using fraudulent representations and documents. William and Siu Chan received at least 22 loans totaling more than $2.5 million, which they diverted for personal expenses, including car purchases and credit card bills.
Ka Ho Chan, who accepted a plea deal, was found to have used the funds for personal purposes as well. He has agreed to pay restitution of up to $350,000.
Acting U.S. Attorney Brook B. Andrews emphasized the gravity of the case: “These defendants exploited a program intended to help struggling businesses during a critical time. Their greed led them to defraud the government and taxpayers.”
FBI Special Agent Steve Jensen added, “We will not tolerate those who exploit programs designed to support small businesses, and these defendants are now facing the consequences.”
Sentences:
William and Siu Chan were sentenced to two years in prison and three years of court-ordered supervision. They were also ordered to pay over $1.2 million in restitution.
Ka Ho Chan was sentenced to one year and one day in prison, along with three years of court-ordered supervision.
