Austin Hsu: Sentenced to Two Years in Relief Fraud

Identity and role

Austin Hsu was charged, pleaded guilty, and was sentenced for COVID-19 relief fraud in a case prosecuted by the DOJ Criminal Division.

The scheme and pandemic-relief role

Between April 27 and July 12, 2020, Hsu applied for nine PPP and disaster (EIDL) loans for five companies, Blueline Capital, Evergreen Forest, Huggtopus, Prodigy Holdings and Sequoia West, seeking $1,159,104.97 in all, according to the statement of facts in his plea agreement. He told the lenders that four of the companies paid salaries; none had employees. He backed the applications with IRS Forms 940 and 941 and W-2s and W-3s that he made himself, listing as staff the current and former employees of another business, Blackrock Services. He incorporated Blueline on June 26, 2020, to apply for a disaster loan and applied for its tax number using his mother's name. Six loans were approved: one from Square, three from Kabbage and two SBA disaster loans, for $709,104.97. The government seized $517,677.18 in October 2020, and Hsu paid the court $191,427.79, which together equal the $709,104.97 he received. The restitution order matches the loans: $54,627.97 to Square, $354,477 to Kabbage and $300,000 to the SBA.

Legal status / controversies

Charged: per DOJ Criminal Division, "Washington Man Charged With COVID-Relief Fraud" (Oct. 27, 2020).
Pleaded guilty: per DOJ Criminal Division, "Man Pleads Guilty to COVID-19 Relief Fraud Scheme."
Sentenced: 2 years in prison, $25,000 fine, $709,104.97 in restitution, per DOJ Criminal Division, "Man Sentenced for Covid-19 Relief Fraud Scheme," and the DOJ CARES Act Fraud tracker.

Where they are now (2025–2026)

Not publicly documented.

Austin Hsu

Identity and role

The scheme and pandemic-relief role

Legal status / controversies

Where they are now (2025–2026)

Sources