(KRON) – A Brentwood man has been sentenced to 37 months in jail after receiving greater than 1 / 4 of one million {dollars} in COVID-19 aid funds for a fraudulent nonprofit, in response to the Division of Justice. The fraudulent nonprofit was discovered to be an unlicensed marijuana distribution enterprise.
Thanh Duy Nguyen, 53, was the only real officer of T&A Distribution, which was an unlicensed interstate marijuana trafficking operation with a number of develop homes across the Bay Space.
Based on the DOJ, Nguyen used his fraudulent enterprise to obtain funds from two Financial Damage Catastrophe Loans (EIDL) from the U.S. Small Enterprise Administration (SBA), which was meant for small companies experiencing monetary disruption on account of the COVID-19 pandemic.
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Nguyen first utilized for the mortgage in April 2020. The DOJ mentioned he “certified” that T&A Distribution was a nonprofit enterprise of “Antiques/Collectibles.” Based on the DOJ, Nguyen additionally falsely reported the “nonprofit’s” gross income and worker rely. T&A Distribution grossed roughly $2.4 million within the 12 months previous to Jan. 31, 2020.
In June 2020, Nguyen listed T&A Distribution as a nonprofit within the enterprise of “miscellaneous services” on a second EIDL utility, in response to the DOJ. Authorities mentioned he additionally lied concerning the enterprise’ gross revenues, price of operations, and worker rely.
The DOJ mentioned he obtained roughly $300,000 in EIDL funds and used “a significant amount of the loan funds for his marijuana distribution business and for gambling.”
Nguyen pleaded responsible to 2 counts of wire fraud, mentioned the DOJ.
Nguyen has been sentenced to a few years of supervised launch and to pay $300,000 in restitution and $300,000 in forfeiture. Nguyen will probably be sentenced on Feb. 28 of subsequent 12 months.
