By Tony Aiello
A local man, Abraham Park, 67, was sentenced to 46 months in prison on Thursday for orchestrating a massive fraud scheme that cost the Small Business Administration (SBA) nearly $7 million through the Economic Injury Disaster Loan (EIDL) program. Park, a La Mirada resident and CEO of a California financial services company, was also ordered to pay $6,993,700 in restitution and $535,041 in forfeiture for his role in the scam.
According to court documents, between March 2020 and October 2022, Park submitted over 120 fraudulent EIDL loan applications on behalf of himself, family members, and clients. He allegedly instructed clients to create fake corporate entities to secure these loans, which were intended to help businesses impacted by the COVID-19 pandemic. In exchange, Park received kickbacks from the funded loans. Of the applications, 73 were approved, leading to a total loss of over $12 million, including funded and unfunded loans.
Park pleaded guilty on March 20 to one count each of wire fraud and money laundering. The case was investigated by the IRS Criminal Investigation Los Angeles Field Office, the FBI Los Angeles Field Office, and the SBA Office of Inspector General. The prosecution was handled by Trial Attorneys Brandon Burkart and Andrew Jaco of the Justice Department’s Criminal Division Fraud Section.
Local authorities emphasized the severity of the crime, with Acting Assistant Attorney General Matthew R. Galeotti and other officials highlighting the collaborative effort to bring Park to justice. The case is part of a broader initiative by the Justice Department’s Fraud Section, which has prosecuted over 200 defendants and recovered millions in fraudulent COVID-relief funds since the CARES Act was enacted.
Residents and small business owners in La Mirada are reminded to stay vigilant against financial scams, especially those exploiting government relief programs. For more information on protecting yourself from fraud, visit the SBA’s official website.
