Generic courtroom photo

Issaquah man charged with COVID-relief loan fraud for $1.1 million

The 46-year-old man allegedly filed nine false disaster loan applications

  • Wednesday, October 28, 2020 2:18pm
  • News

Another Issaquah man has been charged by the Department of Justice for fraudulently receiving COVID-19 relief funds, this time through seeking over $1.1 million in relief from the Small Business Association (SBA) under the CARES Act.

A 46-year-old resident was charged with one count of wire fraud, after allegedly submitting nine disaster loan applications on behalf of five different companies, using fake federal tax filings and numerous false and misleading statements about the businesses and their operations.

The Issaquah man is owner and CEO of Back 2 Health Bellevue, also known as Blackrock Services PS, for which he filed Paycheck Protection Plan (PPP) loans and Economic Injury Disaster loans (EIDL). He fraudulently filed for additional PPP funds for Back 2 Health Bellevue through the names of current and former employees. He also filed for other companies, including a company he incorporated in June 2020 to apply for an EIDL loan, fraudulently stating it was in place since 2017 with nine employees and $1.5 million in receipts.

The CARES Act is a federal law enacted on March 29, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. The EIDL loans

In May, a software engineer in Issaquah was also charged for fraudulently seeking over $1 million in COVID-19 relief grants through the CARES Act, as previously reported by Issaquah Reporter.


In consideration of how we voice our opinions in the modern world, we’ve closed comments on our websites. We value the opinions of our readers and we encourage you to keep the conversation going.

Please feel free to share your story tips by emailing editor@issaquahreporter.com.

To share your opinion for publication, submit a letter through our website https://www.issaquahreporter.com/submit-letter/. Include your name, address and daytime phone number. (We’ll only publish your name and hometown.) We reserve the right to edit letters, but if you keep yours to 300 words or less, we won’t ask you to shorten it.

More in News

Photo via Pexels
King County residents needed for first respiratory study using Apple watches

UW study to help find if devices can detect early warning signs of acute respiratory infections, such as COVID-19 and flu.

Photo courtesy of Johnson and Johnson (jnj.com)
Johnson & Johnson vaccine halted in Washington over side effect

Following federal guidance, Washington health care providers are temporarily pausing Johnson &… Continue reading

Issaquah High alumnus Kaylene Pang is honored on University of Washington’s Senior Day before competing against Oregon State University on April 11. UW won, 2-0, to raise its record to 9-3-2 at post time. The Huskies will conclude their regular-season schedule at Washington State University on Friday. Pang, a defender, has played every minute this season. Photos courtesy of Don Borin/ StopActionPhotography
Pang shines for UW soccer

Issaquah High alumnus Kaylene Pang is honored on University of Washington’s Senior… Continue reading

File Photo
High court ruling spurs effort to retool state’s drug laws

Meanwhile, the Blake decision has gotten people out jail, charges dismissed and possibly clemency for some.

The Monroe Correctional Complex on April 9, 2020. (Sound Publishing file photo)
Formerly incarcerated people regain right to vote in Washington

Rights restored immediately upon release.

Spring Chinook Salmon. Photo courtesy Michael Humling, US Fish & Wildlife Service
Salmon update: King County wants cleaner water, more habitat

Salmon and orcas are in the spotlight once again as King County… Continue reading

Courtesy image
Judge orders Issaquah School District to pay for violating disabilities education act

Issaquah School District was ordered to pay hundreds of thousands of dollars… Continue reading

Guns seized during April 7 arrests (photo credit: Dept. of Justice)
More than 20 arrested across the Puget Sound in drug distribution conspiracy

DOJ says law enforcement agencies seized over 70 guns and hundreds of thousands in cash.

Most Read