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John Jhong, 54, of Sparta, actually submitted bogus applications for more than $15 million in federal pandemic aid earmarked to help struggling companies during COVID-19, U.S. Attorney Philip R. Sellinger said.
Jhong "turned these vital relief programs into his personal ATM," spending the more than $2 million he illegally collected on personal expenses, the U.S. attorney said.
As part of the scam, he attached phony IRS documents to bogus Paycheck Protection Program applications on behalf of 10 purported businesses, a complaint filed in U.S. District Court in Newark says.
Jhong took a deal from the government rather than risk the potential outcome of a trial.
He pleaded guilty to bank fraud, money laundering, and misuse of a Social Security number in federal court in Newark in exchange for leniency at sentencing earlier this month.
Jhong must serve out the entire three years because there's no parole in the federal prison system.
In addition to the prison term, U.S. District Judge Susan D. Wigenton sentenced him to three years of supervised release and ordered him to repay the government $2.13 million.
Sellinger credited special agents of IRS – Criminal Investigation, the U.S. Postal Inspection Service, the Social Security Administration Office of the Inspector General, the Federal Deposit Insurance Corporation – Office of the Inspector General and the U.S. Secret Service for the investigation leading to the plea and sentence.
He also thanked Sparta Township police for their assistance.
Assistant U.S. Attorney Fatime Meka Cano of Sellinger's Economic Crimes Unit in Newark and Trial Attorney Chad M. Davis of the U.S. Department of Justice’s Criminal Division Money Laundering and Asset Recovery Section handled the case.
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