Issaquah Man Charged In Coronavirus Relief Fund Fraud Scheme

ISSAQUAH, WA — Federal prosecutors have charged an Issaquah software engineer with wire and bank fraud, alleging he used falsified documents to seek coronavirus relief loans from the Small Business Administration.

According to the U.S. Attorney's Office, Baoke Zhang, 35, claimed fictitious payroll expenses for information technology companies that did not exist. Prosecutors said Zhang provided two different lenders with forged documents showing 25 employees on his payroll.

"This defendant tried more than once to defraud the Paycheck Protection Program (PPP) — a program designed to keep people working," said Brian Moran, U.S. Attorney for the Western District of Washington. "I am pleased that the systems designed to detect and deny fraudulent payments caught his scheme before federal funds went out the door."

Under the CARES Act, passed by Congress in late March, small businesses are eligible to claim assistance from a $349 billion fund to pay employees and maintain other business-related expenses.

Zhang was formally charged in a federal complaint unsealed Friday afternoon and has not been convicted of the crime. The U.S. Attorney's Office will prosecute the case before a federal judge in Seattle.