ATLANTA — A Braselton financial advisor has been sentenced to prison for stealing millions of dollars from a COVID-19 relief program intended for small businesses.
According to U.S. Attorney Ryan K. Buchanan, the charges, and other information presented in court, Paul Kwak, 65, conspired with others to submit fraudulent applications to the U.S. government’s COVID-19 Economic Injury Disaster Loan (EIDL) program.
Buchanan said Kwak and others submitted the applications in the names of shell companies that had no employees and conducted no business activities.
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The EIDL program is an emergency relief program run by the Small Business Administration that provided millions of Americans with economic relief during the COVID-19 pandemic.
Kwak was convicted on June 20, 2023, after he pleaded guilty.
He was sentenced to three years and four months in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $1,198,300.
Kwak conspired with others, including Joosoo Choi-Bang, Jon Sun Hun, and Sook Hee Kim, each of whom previously pleaded guilty and were sentenced.
Choi-Bang was sentenced to one year and six months in prison, followed by one year of supervised release.
Huh and Kim were sentenced to two years in prison, followed by one year of supervised release.
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Kwak has agreed to forfeit three homes and a Mercedes GLS 580 that were purchased with fraud proceeds.
According to the U.S. Attorney’s Office, in addition to filing fraudulent EIDL applications, Kwak recruited and taught others to file fraudulent applications, totaling over $2 million.
Kwak posted a video on his YouTube channel where he explained, in Korean, that applicants could receive tens of thousands of dollars in assistance.
“Not only did Kwak defraud the government by applying for relief funds for companies that did not exist, but he also recruited and taught others how to do the same,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Let this sentence be a message that the FBI will continue to hold accountable anyone who abuses taxpayer dollars and diverts them from people that actually need them.”
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