A rideshare driver in Los Angeles was arrested on federal charges for obtaining more than $2 million through a fraud scheme based on pandemic-era economic relief loans during COVID-19, funds he allegedly used to purchase cryptocurrencies instead of sustaining legitimate business operations. The U.S. Attorney’s Office for the Central District of California reported the case.
The defendant, Bruce Choi, 34, a resident of the Koreatown neighborhood, was detained on Tuesday at San Francisco International Airport. He faces charges of wire fraud and money laundering. According to the indictment, Choi presented himself as CEO and owner of “Premier Republic”, a company prosecutors described as a fictitious entity with no operations or employees.
On behalf of that nonexistent firm, he allegedly submitted a fraudulent Economic Injury Disaster Loan application to the Small Business Administration, receiving approximately $2 million. The funds were transferred to an account on the Kraken exchange, where crypto assets were purchased. As part of the investigation, authorities seized nearly 40 BTC along with other cryptocurrencies.
Authorities continue to pursue legal action over the misappropriation of pandemic relief funds. In 2023, a TikTok influencer pleaded guilty to fraud after diverting $1.2 million in government loans. Last year, a business owner in England was sentenced to two years in prison for a similar scheme. Choi faces a maximum sentence of 30 years for each wire fraud count and an additional 10 years for money laundering.
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