By: Richard L. Smith
Federal officials have secured the forfeiture of nearly $9 million in assets tied to a fraudulent Paycheck Protection Program (PPP) loan scheme, including cash and a multimillion-dollar New Jersey property, according to information released by the U.S. Department of Justice.
On May 14, 2025, U.S. District Judge Michael E. Farbiarz approved a final judgment that transferred ownership of approximately $7 million in seized funds and a Cresskill residence, valued at close to $2 million, to the federal government.
The assets were determined to be proceeds from fraud and money laundering activities.
The judgment follows a civil forfeiture complaint filed by the U.S. Attorney’s Office on May 6, 2024.
Prosecutors alleged that between April and August 2020, Jae H. Choi fraudulently obtained more than $8.9 million in PPP loans intended to assist businesses during the COVID-19 pandemic.
Authorities say Choi moved the illegally obtained funds through accounts registered under the names of relatives and business entities he controlled.
The complaint further alleged that Choi used portions of the funds for personal expenses and to purchase the property in Cresskill.
Federal officials said the civil action stresses the Justice Department’s ongoing efforts to recover funds misappropriated from pandemic relief programs.