New York Man Sentenced to 6 Years in Prison for Multimillion-dollar COVID-19 Fraud Scheme
A New York attorney sentenced Sheng-Wen Cheng of Manhattan, NY to 72 months in prison for a multimillion-dollar COVID-19 fund fraud scheme.
Cheng fraudulently applied for over $7 million in government-guaranteed loans for small businesses to stay afloat during the COVID-19 pandemic. Cheng, a self-proclaimed “serial entrepreneur,” claimed to have over 200 employees & $1.5 million in monthly payroll when his companies had no more than 14 employees.
Of the $7 million Cheng applied for, a total of $3.7 million in loans were approved. Cheng sent $1 million abroad & spent hundreds of thousands in personal expenses.
This type of fraudulent crime could have been prevented had government agencies utilized the cutting-edge, anti-fraud solutions provided by ToolCASE, Inc.
Read more about the COVID-19 fund fraud scheme here.
Learn more about ToolCASE, here.