DETROIT, Mich. — A federal jury in Detroit convicted a downstate man of wire fraud and money laundering after he got millions of dollars in COVID-19 relief.
The Department of Justice says Johnny Ho of Novi was part of a scheme that took more than $4.1 million in loans from the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL).
During the height of the coronavirus pandemic, the Small Business Administration (SBA) guaranteed these loans under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
According to court documents, Ho submitted falsified PPP and EIDL loan applications for COVID-19 relief funds that he wasn’t entitled to.
Ho owned Diva Nails & Spa III LLC in Northville. Evidence shows he submitted inflated payroll information, along with two fake PPP and EIDL loan applications for nearly $350,000.
Court documents show Ho and his co-conspirators submitted 29 fake PPP and EIDL loan applications on behalf of 16 businesses.
Ho was convicted of one count of conspiracy to commit wire fraud, two counts of wire fraud and two counts of money laundering on Thursday.
He faces up to 20 years in prison for each count of wire fraud and up to ten years in prison for money laundering.
Ho’s sentencing is set for September 27.
If you have any information about attempted fraud involving COVID-19, report it to the Department of Justice’s National Center for Disaster Fraud via this Web Complaint Form.
