Thanh Duy Nguyen previously pleaded guilty to 2 counts of wire fraud, the U.S. Attorney's Office said in a news release.
Nguyen ran and was the only manager of T&A Distribution, an unlicensed interstate marijuana trafficking scheme with grow houses within the Bay Area, prosecutors said.
Prosecutors said Nguyen used the deal to secure two economic injury and disaster loans from the U.S. Small Business Administration. The Coronavirus Aid, Relief and Economic Security Act authorized the SBA to supply EIDL loans to small businesses experiencing significant financial hardship as a consequence of the COVID-19 pandemic.
Nguyen submitted the primary loan application in April 2020 and the second in June 2020. In each cases, he testified that he was not involved in any criminal activity, despite the fact that he knew his marijuana distribution business was illegal under federal law, prosecutors said. He also allegedly lied about T&A Distribution's gross revenues, operating costs and variety of employees.
In the primary application, Nguyen claimed that T&A Distribution was an “antiques/collectibles” nonprofit, and within the second application, he misrepresented T&A Distribution as a “miscellaneous services” nonprofit, prosecutors said.
According to prosecutors, Nguyen ultimately received roughly $300,000 in EIDL funds, most of which he used for his marijuana distribution business and gambling.
In addition to a 37-month prison sentence, Nguyen was sentenced to a few years of supervised release and $300,000 in restitution, prosecutors said. Nguyen will begin his sentence on February 28.
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