A Korean American lawyer who once worked at a major law firm and co-founded a tech startup in New York was ordered to forfeit nearly $9 million in assets linked to Paycheck Protection Program (PPP) fraud, according to the U.S. Department of Justice.
The ruling by Judge Michael Farbiarz of the federal court includes $7 million in cash and a $2 million home in Cresskill, New Jersey, all determined to have been acquired using fraudulently obtained PPP funds. The lawyer, identified only by his last name, Choi, was 48 years old and living in New Jersey when he died unexpectedly in 2022 while under house arrest following his indictment.
Fraud Scheme Involved Fake Businesses and Family Accounts
According to Law.com, Choi, a former attorney at the law firm Dechert, was arrested in September 2020 on charges of bank fraud, false statements, identity theft, and money laundering. He had posted bail and was under home confinement when he died. Neither his legal team nor prosecutors disclosed the cause of death.
In May 2023, prosecutors filed a civil forfeiture complaint against his frozen assets, following efforts by surviving family members to assert ownership.
U.S. Attorney Alina Habba stated that Choi obtained $8,971,457 in PPP loans from April to August 2020, moving the funds into several accounts under family members’ names, including one held by his wife. Court documents say she denied any involvement or knowledge of the transfers.
Choi submitted PPP loan applications under three businesses—HomeschoolBuyerClub in California, SmartLearning in New York, and EduCloud in New Jersey—using falsified tax returns, inflated employee counts, and fabricated bank records. Prosecutors said he used the funds to purchase stocks in Amazon, Tesla, and Apple, as well as a home in Cresskill, a suburb known for its strong school district and desirable housing market.
Federal Agencies Seize Assets After Joint Investigation
Choi was arrested at his home in September 2020, and authorities listed three banks involved in issuing the fraudulent loans. Prosecutors also documented his use of funds for home construction, landscaping, and other personal expenses.
The asset seizure followed a joint investigation by the U.S. Department of Justice, Internal Revenue Service (IRS), Social Security Administration, and the U.S. Postal Inspection Service.
BY YEOL JANG [jang.yeol@koreadaily.com]
