CHARLESTON, S.C. — Three brothers from Georgia, who operated multiple restaurants in the Charleston area, have been sentenced to prison for their roles in a multi-million-dollar fraud scheme related to COVID-19 relief funds.
William Chan, 40, Siu Chan, 32, and Ka Ho Chan, 33, pleaded guilty to charges stemming from their fraudulent applications for Paycheck Protection Program (PPP) and Emergency Injury Disaster Loans (EIDL) starting in March 2020. The brothers used false documents and misrepresented their businesses to receive millions of dollars in relief funds intended for legitimate economic aid during the pandemic.
William and Siu Chan applied for at least 22 loans, totaling over $2.5 million, but diverted the funds for personal use, including purchasing cars and paying off credit card debt. Ka Ho Chan accepted a plea deal for wire fraud after it was revealed that he also used funds received from the scheme for personal expenses. As part of his agreement, he is required to pay restitution up to $350,000.
“These defendants exploited a program intended to help struggling businesses during a critical time. Their greed led them to defraud the government and taxpayers, diverting millions of dollars intended for legitimate economic relief,” said Acting U.S. Attorney Brook B. Andrews.
William and Siu Chan were sentenced to two years in prison, followed by three years of court-ordered supervision, and ordered to pay over $1.2 million in restitution, part of which they have already returned. Ka Ho Chan received a sentence of one year and one day in prison and three years of supervision.
The case sends a strong message from the U.S. government that those who seek to profit from fraudulently obtaining pandemic relief funds will be held accountable.
