Brentwood man sentenced after receiving $300K in COVID19 relief funds for fraudulent marijuana business
Dec 23, 2024
(KRON) – A Brentwood man has been sentenced to 37 months in prison after receiving more than a quarter of a million dollars in COVID-19 relief funds for a fraudulent nonprofit, according to the Department of Justice. The fraudulent nonprofit was found to be an unlicensed marijuana distribution business.
Thanh Duy Nguyen, 53, was the sole officer of T&A Distribution, which was an unlicensed interstate marijuana trafficking operation with multiple grow houses around the Bay Area.
According to the DOJ, Nguyen used his fraudulent business to receive funds from two Economic Injury Disaster Loans (EIDL) from the U.S. Small Business Administration (SBA), which was meant for small businesses experiencing financial disruption as a result of the COVID-19 pandemic.
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Nguyen first applied for the loan in April 2020. The DOJ said he “certified” that T&A Distribution was a nonprofit business of “Antiques/Collectibles.” According to the DOJ, Nguyen also falsely reported the “nonprofit’s” gross revenue and employee count. T&A Distribution grossed approximately $2.4 million in the year prior to Jan. 31, 2020.
In June 2020, Nguyen listed T&A Distribution as a nonprofit in the business of “miscellaneous services” on a second EIDL application, according to the DOJ. Authorities said he also lied about the business’ gross revenues, cost of operations, and employee count.
The DOJ said he received approximately $300,000 in EIDL funds and used “a significant amount of the loan funds for his marijuana distribution business and for gambling.”
Nguyen pleaded guilty to two counts of wire fraud, said the DOJ.
Nguyen has been sentenced to three years of supervised release and to pay $300,000 in restitution and $300,000 in forfeiture. Nguyen will be sentenced on Feb. 28 of next year.