DETROIT, Mich. (WNEM) – After an investigation by the FBI, one Novi man has been convicted by a federal jury in Detroit for a wire fraud and money laundering scheme to obtain more than $4.1 million in Paycheck Protection Program (PPP) loans.

According to the Department of Justice and evidence presented at the trial, Johnny Ho, 41, of Novi, allegedly engaged in a conspiracy to submit falsified PPP and Economic Injury Disaster Loan applications to receive COVID-19 relief funds.

Ho, owner of Diva Nails and Spa III LLC, in Northville, allegedly submitted two fraudulent PPP and EIDL loan applications with inflated payroll information and other falsified application information. The submitted applications requested $350,000 in funds intended for small businesses and their employees who may have been impacted by the COVID-19 pandemic, the DOJ said.

Ho, and his co-conspirators, submitted 29 fraudulent loan applications on behalf of 16 businesses totaling more than $4.1 million, the DOJ said.

Ho was convicted of one count of conspiracy to commit wire fraud, two counts of wire fraud and two counts of money laundering, according to the DOJ.

Sentencing is scheduled for Sept. 27. Ho faces up to 20 years in prison for each of the wire fraud counts, and up to 10 years on the money laundering counts.

The case was investigated by the FBI and the Small Business Association Office of Inspector General, the DOJ said.

Quoted from Various Sources

Published for: Mr Blow Up