DETROIT, Mich. (WNEM) – Following an FBI investigation, a Novi man was found guilty by a federal jury in Detroit of a phone fraud and money laundering conspiracy to obtain more than $4.1 million in loans of the Paycheck Protection Program (PPP).
According to the Department of Justice and the evidence presented at the trial, Johnny Ho, 41, of Novi, is accused of participating in a conspiracy to submit fake PPP applications and Economic Disaster Loans to receive get a COVID-19 relief fund.
Ho, the owner of Diva Nails and Spa III LLC, of Northville, allegedly submitted two fraudulent PPP and EIDL loan applications with inflated payroll information and other fake profile information. Applications have requested $350,000 in funds intended for small businesses and their employees who may have been impacted by the COVID-19 pandemic, the DOJ said.
According to the DOJ, Ho and his accomplices filed 29 fraudulent loan applications on behalf of 16 businesses totaling more than $4.1 million.
According to the DOJ, Ho was convicted of one count of conspiracy to commit electronic fraud, two counts of fraud and money laundering.
Sentencing is scheduled for September 27. Ho faces 20 years in prison for each count of electronic fraud, and up to 10 years for money laundering.
The case has been investigated by the FBI and the Office of the Inspector General of the Small Business Association, the DOJ said.
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