While the world scrambled to survive the fallout from the COVID-19 pandemic, one California man was busy figuring out how to game the system.
Now, that scheme has landed him behind bars — with a massive bill to pay.
How a Financial Advisor Turned to Fraud
Abraham Park, a 67-year-old resident of La Mirada, California, was sentenced to nearly four years in federal prison — 46 months to be exact — after being found guilty of defrauding the U.S. government out of millions.
In addition to prison time, Park has been ordered to pay nearly $7 million in restitution and forfeit over $535,000 in assets.
According to federal prosecutors, Park wasn’t just a one-time offender — he ran a full-scale scam over a two-and-a-half-year period between March 2020 and October 2022.
A Pandemic Loan Program Turned Into a Goldmine
The fraud centered around the Economic Injury Disaster Loan (EIDL) Program, a COVID-era relief effort by the Small Business Administration (SBA) meant to help struggling businesses stay afloat.
But Park saw an opportunity for personal gain instead.
As the owner and CEO of a California-based financial services firm, Park helped clients access financing and improve credit — but during the pandemic, he advised those same clients to create fake companies just so they could qualify for disaster loans.
Fake Businesses, Real Cash
Once his clients set up the phony corporations, Park would file fraudulent EIDL applications on their behalf — over 120 applications in total.
In return, he took a cut of the loan payouts as a kickback.
And he didn’t stop at helping others. Park also submitted bogus applications for himself and even his family members, using entirely fake businesses to try to get more money from the government.
All told, 73 of those loans were actually funded, resulting in nearly $7 million in direct losses to the SBA — and over $12 million in total losses when including unfunded attempts.
Guilty Plea and Federal Charges
On March 20, Park pleaded guilty to wire fraud and money laundering, admitting his role in the elaborate scheme.
Federal investigators from the IRS Criminal Investigation Unit, the FBI’s Los Angeles office, and the SBA Office of Inspector General were all involved in cracking the case.
Acting Assistant Attorney General Matthew R. Galeotti and other federal officials announced the sentencing, calling it one of many fraud cases tied to pandemic relief funds.
Part of a Much Bigger Problem
Park’s case is just one piece of a larger puzzle.
Since the CARES Act was introduced to help businesses weather COVID-19, the Justice Department’s Fraud Section has gone after over 200 defendants in more than 130 criminal cases related to fraudulently obtained pandemic loans.
In total, authorities have seized more than $78 million in cash, real estate, and luxury goods tied to COVID loan fraud.
Justice Served — But the Damage Remains
Though Park is now facing the consequences, his actions represent a broader misuse of a program meant to support real businesses in crisis.
And while his prison sentence and multi-million-dollar penalty send a message, the damage done to public trust — and the SBA’s resources — will take far longer to recover.