Sheng-Wen Cheng — Information

Summary

An Information filed by the U.S. Attorney in the U.S. District Court for the Southern District of New York, 21 Cr. ___ (AJN), against Sheng-Wen Cheng, also known as Justin Cheng and Justin Jung. Count One charges major fraud against the United States under Title 18, United States Code, Sections 1031 and 2, alleging that from about April 2020 through about August 13, 2020 Cheng sought government-guaranteed loans for companies he controlled through the Paycheck Protection Program and the Economic Injury Disaster Loan Program by false pretenses and documents. Count Two charges bank fraud, alleging that he obtained PPP loans from FDIC-insured banks by false representations. The back page lists further charges under Title 18 Sections 1343 and 1344 and securities provisions, over the name of United States Attorney Audrey Strauss.

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UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

UNITED STATES OF AMERICA

= Ve = INFORMATION
SHENG-WEN CHENG, : 21 Cr. ___ + (AJN)

a/k/a “Justin Cheng,” :

a/k/a “Justin Jung,”

Defendant.
COUNT ONE

(Major Fraud Against the United States)

The U.S. Attorney charges:

Mis From at least in or about April 2020 through at least
on or about August 13, 2020, in the Southern District of New
York and elsewhere, SHENG-WEN CHENG, a/k/a “Justin Cheng,” a/k/a
“Justin Jung,” the defendant, willfully and knowingly executed,
and attempted to execute, a scheme and artifice with the intent
to defraud the United States, and to obtain money and property
by means of false and fraudulent pretenses, representations, and
promises, in a grant, contract, subcontract, subsidy, loan,
guarantee, insurance, and other form of Federal assistance,
including through an economic stimulus, recovery and rescue plan
provided by the Government, the value of which was $1,000,000
and more, to wit, CHENG engaged in a scheme to obtain
Government-guaranteed loans by means of false and fraudulent

pretenses, representations, and documents, for several companies
controlled by CHENG (the “Cheng Companies”) through two loan
programs of the United States Small Business Administration
designed to provide relief to small businesses during the novel
coronavirus/COVID-19 pandemic, namely the Paycheck Protection
Program (the “PPP”) and the Economic Injury Disaster Loan
(“EIDL”) Program.

(Title 18, United States Code, Sections 1031 and 2.)

COUNT TWO
(Bank Fraud)

The U.S. Attorney further charges:

2 From at least in or about April 2020 through at least
on or about August 13, 2020, in the Southern District of New
York and elsewhere, SHENG-WEN CHENG, a/k/a “Justin Cheng,” a/k/a
“Justin Jung,” the defendant, willfully and knowingly executed,
and attempted to execute, a scheme and artifice to defraud a
financial institution, the deposits of which were insured by the
Federal Deposit Insurance Corporation (“FDIC”), and to obtain
moneys, funds, credits, assets, securities, and other property
owned by, and under the custody and control of, such financial
institution, by means of false and fraudulent pretenses,
representations and promises, to wit, CHENG engaged in a scheme
to obtain Government-guaranteed loans for the Cheng Companies
from FDIC-insured banks through the PPP by means of false and
fraudulent pretenses, representations, and documents.

(Title 18, United States Code, Sections 1344 and 2.)
COUNT THREE
(Securities Fraud)

The U.S. Attorney further charges:

Bi From at least in or about 2017 through at least in or
about 2019, in the Southern District of New York and elsewhere,
SHENG-WEN CHENG, a/k/a “Justin Cheng,” a/k/a “Justin Jung,” the
defendant, willfully and knowingly, directly and indirectly, by
the use of the means and instrumentalities of interstate
commerce, and of the mails, and of facilities of national
securities exchanges, in connection with the purchase and sale
of securities, used and employed manipulative and deceptive
devices and contrivances, in violation of Title 17, Code of
Federal Regulations, Section 240.10b-5, by: (a) employing
devices, schemes and artifices to defraud; (b) making untrue
statements of material fact and omitting to state material facts
necessary in order to make the statements made, in the light of
the circumstances under which they were made, not misleading;
and (c) engaging in acts, practices and courses of business
which operated and would operate as a fraud and deceit upon
persons, to wit, CHENG solicited and obtained investments in
Alchemy Coin Technology Limited and related companies (“Alchemy
Coin”) controlled by CHENG through materially false and
misleading statements and omissions regarding Alchemy Coin’s
access to capital, use of investor proceeds, the product

readiness of its purported blockchain-based peer-to-peer lending
platform, and the registration of its tokens as part of an
initial coin offering.
(Title 15, United States Code, Sections 78j(b) & 78ff; Title 17,

Code of Federal Regulations, Section 240.10b-5; and Title 18,
United States Code, Section 2.)

COUNT FOUR
(Wire Fraud)

The U.S. Attorney further charges:

4. From at least in or about 2018 through at least in or
about 2019, in the Southern District of New York and elsewhere,
SHENG-WEN CHENG, a/k/a “Justin Cheng,” a/k/a “Justin Jung,” the
defendant, willfully and knowingly, having devised and intending
to devise a scheme and artifice to defraud, and for obtaining
money and property by means of false and fraudulent pretenses,
representations, and promises, transmitted and caused to be
transmitted by means of wire, radio, and television
communication in interstate and foreign commerce writings,
signs, signals, pictures and sounds for the purpose of executing
such scheme and artifice, to wit, CHENG obtained due diligence
fees from various start-up companies as part of an advance fee
scheme through materially false and misleading statements
regarding the purpose and refundability of the fees and his
interest and ability to make investments in the start-up
companies.

(Title 18, United States Code, Sections 1343 and 2.)
FORFEITURE ALLEGATIONS

Dx As the result of committing the bank and wire fraud
offenses charged in Counts Two and Four of this Information,
SHENG-WEN CHENG, a/k/a “Justin Cheng,” a/k/a “Justin Jung,” the
defendant, shall forfeit to the United States, pursuant to Title
18, United States Code, Section 982(a) (2) (A), any and all
property constituting, or derived from, proceeds obtained
directly or indirectly, as a result of the commission of said
offenses, including but not limited to a sum of money in United
States currency representing the amount of proceeds traceable to

the commission of said offenses and the following specific

property:
a. One 2020 White Mercedes Model S560X4, VIN No.
W1KUX8GB8LA556628.
6. As a result of committing the securities fraud offense

charged in Count Three of this Information, SHENG-WEN CHENG,
a/k/a “Justin Cheng,” a/k/a “Justin Jung,” the defendant, shall
forfeit to the United States, pursuant to Title 18, United
States Code, Section 981(a)(1)(C) and Title 28 United States
Code, Section 2461(c), any and all property, real and personal,
which constitutes or is derived from proceeds traceable to the
commission of said offense, including but not limited to a sum
of money in United States currency representing the amount of

proceeds traceable to the commission of said offense.
Substitute Assets Provision

7. If any of the above-described forfeitable property, as
a result of any act or omission of the defendant:
a. cannot be located upon the exercise of due
diligence;
b. has been transferred or sold to, or deposited

with, a third person;

G. has been placed beyond the jurisdiction of the
Court;

d. has been substantially diminished in value; or

e. has been conn Evel with other property which

cannot be subdivided without difficulty;
it is the intent of the United States, pursuant to Title 21,
United States Code, Section 853(p), and Title 28, United States
Code, Section 2461, to seek forfeiture of any other property of
the defendant up to the value of the forfeitable property
described above.

(Title 18, United States Code, Sections 981 and 982;

Title 21, United States Code, Section 853; and
Title 28, United States Code, Section 2461.)

AUDREY SfRAUSS
United States Attorney
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

UNITED STATES OF AMERICA
v.
SHENG-WEN CHENG,

a/k/a “Justin Cheng,”
a/k/a “Justin Jung,”

Defendant.
INFORMATION
21 Cr. __ (AUN)

(Title 15, United States Code, Sections
783 (b) and 78ff; Title 17, Code of
Federal Regulations, Section 240.10b-5;
and Title 18, United States Code,
Sections 1031, 1343, 1344 & 2)

AUDREY STRAUSS

United States Attorney


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