Stimulus Fraud Nets California Man $3.6M As Others Await Fourth Payments

Economic stimulus checks are prepared for printing at the Philadelphia Financial Center May 8, 2008 in Philadelphia, Pennsylvania. One hundred and thirty million households are eligible to receive a tax rebate check under the $168 billion economic stimulus plan.

Authorities for the Department of Justice arrested a California man in connection with a fraud that netted him $3.6 million in COVID-19 relief funds as many await another round of stimulus checks.

Lebnitz Tran, 40, of San Jose, was arrested on Thursday after allegedly submitting 27 fraudulent loan applications for the government’s Paycheck Protection Program (PPP) and at least seven for the Economic Injury Disaster Loan (EIDL).

Tran allegedly used false information and documents, including falsified employee information and tax documents, in an attempt to obtain over $8 million in funds. He was reported to have received $3.6 million in illicit loan proceeds from the scheme, according to the Justice Department’s news release.

In the indictment by a San Francisco federal grand jury, Tran was accused of using the funds he received from the fraud scheme to make purchases at retail stores and restaurants, as well as a $100,000 Tesla from a dealership.

The San Jose resident now faces six counts of wire fraud and three counts of bank fraud. He may face up to 30 years in prison for each count of bank fraud and 20 years for every count of wire fraud, according to NBC Bay Area.

The fraudulent scheme involving the relief funds comes as a petition calling for monthly recurring stimulus checks continues to gain momentum, receiving 85,000 new signatures in the past week.

The petition, which was posted by Colorado restaurant owner Stephanie Bonin last year, calls for $2,000 monthly payments for adults and $1,000 checks for dependents that would last through the duration of the COVID-19 pandemic.

“Our country is still deeply struggling. The recovery hasn’t reached many Americans – the true unemployment rate for low-wage workers is estimated at over 20% and many people face large debts from last year for things like utilities, rent and child care,” an update on the Change.org petition read.

“Moving forward Congress needs to make recurring checks automatic if certain triggers are met. No more waiting around for our government to send the help we need. Sign to join our movement to get recurring checks to the people,” it added.

The petition has earned 2,574,723 signatures of its three million goal as of 8:28 p.m. ET Sunday. It will become the platform’s most signed petition if it reaches its goal.