Los Angeles Rideshare Driver Charged with $2 Million COVID Loan Fraud and Crypto Money Laundering
Koreatown Rideshare Driver Arrested for Alleged $2 Million Fraud Scheme
LOS ANGELES – A rideshare driver from Koreatown has been arrested at San Francisco International Airport for allegedly defrauding government COVID-19 relief programs of over $2 million, a scheme that involved funding cryptocurrency investments.
Bruce Choi, 34, faces federal charges for reportedly fabricating tax returns and creating fictitious businesses to secure funds through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). Prosecutors allege Choi misrepresented himself as the CEO of "Premier Republic," a non-existent entity with no real operations or employees, as stated by the U.S. Attorney’s Office.
Choi allegedly submitted false documents, including a fabricated 2019 tax return that claimed nearly $11.8 million in gross receipts and a bank statement dated "February 31, 2020," which does not exist. Through these deceptions, he secured a $1,995,000 PPP loan and a $10,000 EIDL advance. The funds were then transferred to a Kraken cryptocurrency exchange account. Authorities have reported the seizure of nearly 40 bitcoins linked to the fraudulent activities.
Choi was apprehended on Tuesday upon his arrival from Japan. However, details about his activities in Japan prior to his arrest remain undisclosed. While significant amounts of the cryptocurrency have been seized, it is unclear whether the full $2 million disbursed has been recovered.
Choi is expected to appear in court in San Francisco on Wednesday, following which he will be transferred to Los Angeles for arraignment. If convicted, he faces a statutory maximum of 30 years in prison for each wire fraud charge and up to 10 years for money laundering.
