Austin Hsu has pleaded guilty to one charge of wire fraud after being found to have perpetrated a scheme to fraudulently obtain Covid-19 relief.
Based in Issaquah, the defendant admitted that he submitted nine false disaster loan applications seeking over $1.1m from the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP).
The CEO of Blackrock Services, who operated as “Back 2 Health”, Hsu received EIDL and PPP funds for the firm.
He then used the names of all the company’s employees, both past and present, to apply for additional PPP loans under the details of his four other companies.
Hsu was also found to have incorporated a company named Blueline Capital in June 2020 for the sole purpose of applying for an EIDL loan.
Hsu falsely claimed that Blueline had been established in 2017, employing nine staff members and operating over gross receipts of over $1.5m, when in fact it had “no business or operations”.
Out of Hsu’s nine fraudulent applications, six were approved as he managed to obtain in excess of $700,000 in Covid-19 relief funds.
Sentencing has been scheduled for 19 April 2021, where Hsu’s case will appear before James Robart, US District Court Judge.