A federal grand jury has indicted a San Jose man in connection with a scheme to submit dozens of fraudulent applications that allegedly netted him $2 million in Paycheck Protection Program and Economic Injury Disaster Loan COVID-19 relief funds, Acting United States Attorney Stephanie Hinds announced Friday.
Lebnitz Tran, 40, who was arrested on Friday, faces six counts of wire fraud and three counts of bank fraud, prosecutors said.
Tran submitted at least 27 Paycheck Protection Plan loan applications and at least seven Economic Injury Disaster Loan applications using fictitious information and falsified documents, prosecutors said.
This included falsified employee information, fictitious or grossly exaggerated payroll figures and fake tax documents.
Tran is accused of seeking more than $8 million in funds and obtaining more than $3.6 million in illicit loan proceeds.
Tran faces a maximum penalty of 30 years in prison for each count of bank fraud and 20 years in prison for each count of wire fraud.