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Hicksville residents Ngoc Manh Nguyen, Victoria Dieuy Ho, and Bronx resident Dat Tat Ho have been arrested and charged for allegedly stealing more than $13 million in federal funding that was designated for small business owners from the government's Paycheck Protection Program.
All three were arrested this week and charged in federal court with one count of conspiracy to commit bank and wire fraud, and conspiracy to make false statements.
According to the indictment, the three “falsely and grossly overstated the number of employees and payroll at their nail salons and other businesses through fraudulent and doctored payroll and tax records in order to obtain larger loans.”
“As alleged, these defendants conspired to rip off the (Small Business Administration’s) COVID-relief small business loan program and financial institutions by lying about how many people they employed in their family business and how much they paid those employees,” acting U.S. Attorney Audrey Strauss said.
“They allegedly exploited a program designed to provide vital funding for small businesses that are legitimately struggling in the midst of the pandemic.”
The three own and operate a chain of more than 15 “Victoria Nails & Spa” salons throughout Long Island Bronx, and Brooklyn, Strauss said. Between April and June, the three submitted online applications to at least two banks to claim a total of more than $13 million in government-guaranteed loans for those businesses.
In doing so, it is alleged that Nguyen, Victoria Ho, and Dat Ho lied on documents regarding how many employees they had, how much they were being paid, and listed the same employees on different applications from different nail salons to support their statements.
A total of more than $13 million in PPP loans were approved for the Victoria Companies and approximately $7.8 million in loans were disbursed into bank accounts controlled by Nguyen, Dat Ho, and other family members.
It is further alleged that when the three learned that a hold was placed on the Victoria Companies bank accounts that received PP loans due to suspected fraud, they conducted Internet searches for “PPP Fraud,” “PPP Loan Fraud Arrests,” and “How to get rid of a PPP Loan.”
They then proceeded to withdraw the applications for and/or repaid the PPP loans for the Victoria Companies issued by one of the financial institutions that issued the funds.
“The benefits offered by the CARES Act for PPP loans were established to help small businesses survive during the pandemic,” FBI Assistant Director William Sweeney, Jr. said. “Unfortunately, the owners of Victoria Nails & Spa saw this program as their own personal piggy bank.”
Nguyen, 44, Victoria Ho, 31, and Dat Ho, face up to 30 years in prison if convicted. No return court date has been announced.
“Allegedly misrepresenting the number of employees on their payroll to obtain the funding, they deposited this money into accounts controlled solely by them,” Sweeney added. “When the bank froze the funds, they froze as well, conducting Internet searches for topics related to PPP fraud.
“Today’s Internet search for ‘PPP Loan Fraud Arrests’ will certainly produce an unwanted result – one that includes the name of their company leading the headlines.”
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