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A North Carolina man faces federal charges for allegedly filing fraudulent loan applications that sought more than $6 million through the Paycheck Protection Program (PPP), the Department of Justice said Tuesday.
The man, identified as 38-year-old Tristan Bishop Pan, received at least $1.7 million before government officials seized some of the benefits during their inquiry into the allegations. Pan is charged with wire fraud, bank fraud and engaging in unlawful monetary transactions.
Accusations against Pan are outlined in an indictment were unsealed earlier Tuesday, according to a Justice Department press release. They allege the Garner resident submitted 14 applications for fraudulent PPP loans in an attempt to acquire $6.1 million to several entities, at least three of which were named after Game of Thrones characters or concepts.
Referencing the indictment, Tuesday's release said Pan filed applications on behalf of businesses called White Walker, Khaleesi and The Night's Watch, in addition to another named Pan Insurance Agency. In completing the loan applications, Pan allegedly submitted false statements about each company's respective employee roster and payroll expenses. He received loan money after applications filed on behalf of Pan Insurance Agency and White Walker were approved.
The Treasury Inspector General for Tax Administration, Federal Deposit Insurance Corporation Office of Inspector General and FBI contributed to the investigation that preceded federal charges against Pan. The Inspector General at the Small Business Administration (SBA) assisted the investigation as well. A trial attorney from the Justice Department's fraud section, within its criminal division, will prosecute the case alongside two assistant U.S. attorneys.
The PPP was originally established near the onset of the coronavirus pandemic, as a component of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The bipartisan piece of legislation, signed into law at the end of March, aimed to counteract some of the pandemic's financial consequences with relief funding to individuals and entities. Launched in early April, the PPP is designed to support small businesses facing economic challenges as a result of the outbreak through forgivable loans, which the SBA guarantees.
Businesses that meet guidelines set by the SBA are eligible to receive loans through the program, and are required to use any funding they acquire for employee retention and other essential purposes, like mortgage, rent and utility costs. PPP loans are forgiven as long as recipients use a portion of the funds to cover payroll expenses.
Newsweek reached out to the Department of Justice and Small Business Administration for comments but did not receive replies in time for publication.
