David Tai Leung misused $3.36 million of the $5.6 million in pandemic aid relief he received, prosecutors said.
SAN JOSE – A Bay Area restaurateur has been sentenced to 2½ years in federal prison for fraudulently obtaining and misusing millions of dollars in COVID-19 relief aid, according to authorities.David Tai Leung, 58, of Sacramento, pleaded guilty in February to three counts of wire fraud. Leung owned Kome Japanese Seafood Buffet in Daly City, Tomi Japanese Seafood and Grill in San Jose, and Tomi Japanese Seafood Buffet in Concord.
Prosecutors said Leung admitted he transferred about $3.5 million to a personal investment account he controlled and used the funds to purchase securities and pay fees associated with the refinancing of a mortgage on his personal residence in Sacramento. Prosecutors said Leung ultimately misused about $3.36 million of the $5.6 million in RRF and PPP funds he received.
The PPP was administered by the Small Business Administration, or SBA, as part of the Coronavirus Aid, Relief and Economic Act. The law was enacted in 2020 to provide emergency financial assistance to Americans suffering from the economic effects of COVID-19.
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