Criminal Indictment — United States v. Yun Jae Moon (Northern District of Georgia)

Summary

Criminal indictment filed February 17, 2021, in United States v. Yun Jae Moon, Case 1:21-cr-00064-UNA, Document 1, in the Northern District of Georgia. The grand jury charges conspiracy to commit wire fraud in Count One, from in or about April 2020 until in or about August 2020. It alleges that Moon and another member of the conspiracy submitted false PPP applications for entities, in some instances without the knowledge or consent of the individuals whose businesses were listed, and used the funds for personal expenses, office expenses, business debt and credit card debt. The overt acts list applications submitted by a co-conspirator in the names of entities including Jang & Kim, Inc. and HJJ Investment, Inc.

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“Criminal Indictment — United States v. Yun Jae Moon (Northern District of Georgia).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crim-gand-1-21-cr-00064-u-s-v-yun-jae-moon-doc1-information-2021-02-17-41bd71d3b8/, SHA-256 b9aca3a76aba1b20eb92f16676703fd04ae06036e9b642434e46bb9b9ebf0e8f.

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Case 1:21-cr-00064-UNA Document 1 Filed 02/17/21 Page 1 of 10
HLEDJN OPEN COURT
U.S.D.C.-Allan;"

FEB t 7 202!
E^™ESN-H?."e*
Deputy Clerk

IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION

UNITED STATES OF AMERICA

V. Criminal Indictment

YUN JAE MOON No.
A/K/A MOON HO ROH H21 CR064
A/K/A JOON MOON
A/K/A ALEX MOON
A/K/A JAKE MOON

THE GRAND JURY CHARGES THAT:

Background

At all times relevant to this Criminal Indictment:

The Small Business Administration

1. The United States Small Business Admmistration (//SBA//) was an

executive branch agency of the United States government that provided support

to entrepreneurs and small businesses. The mission of the SBA was to maintain

and strengthen the nation's economy by enabling the establishment and viability

of small businesses and by assisting in the economic recovery of communities

after disasters.

2. As part of this effort/ the SBA enabled and provided for loans

through banks/ credit unions/ and other lenders. These loans had government-

backed guarantees.
Case 1:21-cr-00064-UNA Document 1 Filed 02/17/21 Page 2 of 10

The Pay check Protection Program

3. The Coronavirus Aid/ Relief, and Economic Security (//CARES") Act

was a federal law enacted in or around March 2020 and was designed to provide

emergency financial assistance to the millions of Americans who are suffering

the economic effects caused by the COVID-19 pandemic.

4. One source of relief that the CARES Act provided was the

authorization of up to $349 billion in forgivable loans to small businesses for

payroll/ mortgage interest/ rent/lease/ and utilities/ through a program referred

to as the Pay check Protection Program (//PPP//). Ln April 2020, Congress

authorized up to $310 billion in additional PPP funding.

5. The PPP allowed qualifying small businesses and other

organizations to receive PPP loans. Businesses must use PPP loan proceeds for

payroll costs/ interest on mortgages/ rent/ and utilities. The PPP allowed the

interest and principal on the PPP loan to be entirely forgiven if the business spent

the loan proceeds on these expense items within a designated period of time and

used a certain percentage of the PPP loan proceeds for payroll expenses.

6. The amount of a PPP loan that a small business may have been

entitled to receive was determined by the number of employees employed by the

business and the business's average monthly payroll costs.

7. In order to obtain a PPP loan/ a qualifying business was required to

submit a PPP loan application/ which was signed by an authorized

representative of the business. The PPP loan application required the business
Case 1:21-cr-00064-UNA Document 1 Filed 02/17/21 Page 3 of 10

(through its authorized representative) to acknowledge the program rules and

make certain affirmative certifications in order to be eligible to obtain the PPP

loan. In the PPP loan application/ the small business (through its authorized

representative) had to state/ among other things/ its (a) average monthly payroll

expenses and (b) number of employees. These figures were used to calculate the

amount of money the small business was eligible to receive under the PPP. In

addition/ businesses applying for a PPP loan had to provide documentation

showing their payroll expenses.

8. The SBA oversaw the PPP. However/ individual PPP loans were

issued by private/ approved lenders who received and processed PPP

applications and supporting documentation/ and then made loans using the

lenders7 own funds/ which were 100% guaranteed by the SBA. Data from the

application/ including information about the borrower/ the total amount of the

loan/ and the listed number of employees/ were transmitted by the lender to the

SBA in the course of processing the loan.

Count One
Conspiracy to Commit Wire Fraud
(18 U.S.C. § 371)

9. The Grand Jury re-alleges and mcorporates by reference the factual

allegations contained in paragraphs 1 through 8 of this Criminal Indictment as if

fully set forth herein.

10. Beginning in or about April 2020 and continuing until in or about

August 2020, the exact dates unknown/ the defendant/ YUN JAE MOON/

A/K/A MOON HO ROH/ A/K/A JOON MOON/ A/K/A ALEX MOON/
3
Case 1:21-cr-00064-UNA Document 1 Filed 02/17/21 Page 4 of 10

A/K/A JAKE MOON/ did knowingly and wiUfuUy combine/ conspire/

confederate/ agree/ and have a tacit understanding with another individual

known to the Grand Jury to devise and intend to devise a scheme and artifice to

defraud/ and to obtain money and property/ by means of materially false and

fraudulent pretenses/ representations/ and promises/ and by the omission of

material facts/ well knowing and having reason to know that said pretenses/

representations/ and promises were and would be false and fraudulent when

made and caused to be made/ and that said omissions were and would be

material/ and/ in so doing/ with the intent to defraud/ caused interstate wire

communications to be made in furtherance of the scheme and artifice to defraud/

in violation of Title 18, United States Code/ Section 1343.

Manner and Means

11. It was a part of the scheme and artifice to defraud that the defendant

and another member of the conspiracy conspired to submit PPP applications

containing materially false information to multiple authorized lenders.

12. Throughout the conspiracy/ the defendant and the other member of

the conspiracy submitted and caused to be submitted false PPP applications for a

number of entities controlled by the defendant and other third parties. These

PPP applications contained materially false information about the applicant

entities total number of employees/ corporate expenses/ and revenue. In some

instances/ the defendant and the other member of the conspiracy submitted and

caused to be submitted false applications to lenders without the knowledge or

consent of the individuals whose businesses were listed as the recipient entities.
Case 1:21-cr-00064-UNA Document 1 Filed 02/17/21 Page 5 of 10

As a result of the defendants7 false statements/ multiple lenders issued PPP loans

to these various entities.

13. It was further a part of the conspiracy that the defendant and the

member of the conspiracy then used the fraudulently obtained funds for

unauthorized expenditures/ including personal expenses/ office expenses/

business debt/ and credit card debt.

Overt Acts

14. In order to carry out the conspiracy and to accomplish the objects

thereof/ the defendant and known and unknown members of the conspiracy

committed various overt acts in the Northern District of Georgia and elsewhere/

including/ but not limited to/ the following:

a. On or about April 28,2020, a co-conspirator of the defendant

submitted and caused to be submitted a PPP application in the name

of Jang & Kim/ Inc. (//Jang & Kim//) containing materially false

information/ including the number of employees and monthly

payroll amount for Jang & Kim.

b. On or about April 30,2020, a co-conspirator of the defendant

submitted and caused to be submitted a PPP application m the name

of Jones Loop Marathon/ inc. ("Jones Loop Marathon") containing

materially false information/ including the number of employees

and monthly payroll amount for Jones Loop Marathon.

c. On or about April 30,2020, a co-conspirator of the defendant

submitted and caused to be submitted a PPP application in the name
Case 1:21-cr-00064-UNA Document 1 Filed 02/17/21 Page 6 of 10

of SJB Auto Parts Wholesale/ Inc. fSJB Auto Parts Wholesale")

containing materially false information/ including the number of

employees and monthly payroll amount for SJB Auto Parts

Wholesale.

d. On or about April 30,2020, a co-conspirator of the defendant

submitted and caused to be submitted a PPP application in the name

of Smile Cool Tools HVAC/ Inc. ("Smile Cool Tools HVAC")

containing materially false information/ including the number of

employees and monthly payroll amount for Smile Cool Tools

HVAC.

e. On or about May I/ 2020, a co-conspu-ator of the defendant

submitted and caused to be submitted a PPP application in the name

of Berkeley Import/ LLC (Berkeley Import") containing materially

false information/ including the number of employees and monthly

payroll amount for Berkeley Import.

f. On or about May I/ 2020, a co-conspirator of the defendant

submitted and caused to be submitted a PPP application in the name

of H Cafe/ Inc. (//H Cafe ) containing materially false information/

including the number of employees and monthly payroll amount for

H Cafe.

g. On or about May I/ 2020, a co-conspirator of the defendant

submitted and caused to be submitted a PPP application in the name

of One Dream/ Inc. (//One Dream") containing materially false
Case 1:21-cr-00064-UNA Document 1 Filed 02/17/21 Page 7 of 10

information/ including the number of employees and monthly

payroll amount for One Dream.

h. On or about May 4/ 2020, a co-conspirator of the defendant

submitted and caused to be submitted a PPP application in the name

of KO Wholesale/ Inc. (//KO Wholesale") contammg materially false

information/ including the number of employees and monthly

payroll amount for KO Wholesale.

i. On or about May 4/ 2020, a co-conspirator of the defendant

submitted and caused to be submitted a PPP application in the name

of Shannon Chao/ Inc. ("Shannon Chao ) containing materially false

information/ including the number of employees and monthly

payroll amount for Shannon Chao.

j. On or about May 5/ 2020, a co-conspirator of the defendant

submitted and caused to be submitted a PPP application in the name

of Alpha Construction & Management/ Inc. ("Alpha Construction &

Management") containing materially false information/ including

the number of employees and monthly payroll amount for Alpha

Construction & Management.

k. On or about May 11,2020, a co-conspirator of the defendant

submitted and caused to be submitted a PPP application in the name

of JKK Artworkible/ Inc. (//JKK Artworkible") contaming materially

false information/ including the number of employees and monthly

payroll amount for JKK Artworkible.

7
Case 1:21-cr-00064-UNA Document 1 Filed 02/17/21 Page 8 of 10

1. On or about May II/ 2020, a co-conspirator of the defendant

submitted and caused to be submitted a PPP application in the name

of North Atlanta Construction & Enterprise/ Inc. ("North Atlanta

Construction & Enterprise") containing materially false information,

including the number of employees and monthly payroll amount for

North Atlanta Construction & Enterprise.

m. On or about May 16,2020, a co-conspirator of the defendant

submitted and caused to be submitted a PPP application in the name

of Jiwoo s Beauty Lounge, Inc. ( Jiwoo's Beauty Lounge")

containing materially false information/ including the number of

employees and monthly payroll amount for Jiwoo/s Beauty Lounge.

n. On or about May 17,2020, a co-conspirator of the defendant

submitted and caused to be submitted a PPP application in the name

of MJ Boom Entertainment containing materially false information/

including the number of employees and monthly payroll amount for

M] Book Entertainment.

o. On or about May 18,2020, a co-conspirator of the defendant

submitted and caused to be submitted a PPP application in the name

of AJM Remodeling/ Inc. (//AJM Remodeling") containing materially

false information/ including the number of employees and monthly

payroll amount for MJ Book Entertainment.

p. On or about August 7/ 2020, a co-conspirator of the defendant

submitted and caused to be submitted a PPP application in the name

8
Case 1:21-cr-00064-UNA Document 1 Filed 02/17/21 Page 9 of 10

of HJJ Investment/ Inc. (//HJJ Investment ) containing materially

false information/ including the number of employees and monthly

payroU amount for HJJ Investment.

All in violation of Title 18, United States Code/ Section 371.

Forfeiture

15. Upon conviction of the offense alleged in Count 1 of this Criminal

Indictment/ the defendant shall forfeit to the United States/ pursuant to Title 18,

United States Code/ Section 981(a)(l)(C) and Title 28, United States Code/ Section

2461 (c)/ any property constituting or derived from proceeds obtained directly or

indirectly as a result of said violations.

16. If/ as a result of any act or omission of the defendant/ any property

subject to forfeiture:

a. Cannot be located upon the exercise of due diligence;

b. Has been transferred or sold to/ or deposited with/ a third person;

c. Has been placed beyond the jurisdiction of the Court;

d. Has been substantially diminished in value; or

e. Has been commingled with other property which cannot be subdivided

without difficulty;

The United States intends/ pursuant to Title 18, United States Code/ Section

982(b) and Title 21, United States Code/ Section 853(p)/ and Title 28, United

States Code/ Section 2461(c) to seek forfeiture of any property of said defendant
Case 1:21-cr-00064-UNA Document 1 Filed 02/17/21 Page 10 of 10

up to the value of the forfeitable property.

BILL

KURT R. ERSKINE
Acting United States Attorney
'T^e-^ym^' C}-. /M-
THOMAS WREPI
Assistant linked States Attorney
Georgia Bar N(^346781

)\WARD
lant United''States Attorney
Georgia Bar No. 523110

600 U.S. Courthouse
75 Ted Turner Drive SW
Atlanta/ GA 30303
404-581-6000; Fax: 404-581-6181

DANIEL S. KAHN
Acting Chief, Fraud Section
U..S. Department of Justice
I'^MA^J.
DALLAS KAPLAN'
Trial Attorney, Fraud Section
U.S. Department of Justice
D.C. Bar No. 1011465

1400 New York Ave/ NW
Bond Building/ llth Floor
Washington/ DC 20005
202-514-2000; Fax: 202-514-3708

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