Tristan Bishop Pan, 38, of the Raleigh suburb of Garner, North Carolina, is accused of fraudulently seeking Paycheck Protection Program loans, which are guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security, or CARES Act.
Pan, the CEO of Pan Insurance Agency, also controlled or was tied to several other entities including Pan Realty LLC, Technology for Teaching and Digital Encryption Storage LLC.
Prosecutors say Pan submitted several bogus PPP loan applications, not only on behalf of Pan Insurance Agency, but also other entities, including a trio of "Game of Thrones"-themed entities called White Walker LLC, Khaleesi LLC and The Night's Watch LLC, which appear to be named for the books/TV series' ice zombie-like creatures, dragon-wielding queen and the garrison of a giant ice-wall, respectively.
As part of the CARES Act, Congress authorized about $649 billion in two installments as of April to fund forgivable loans for qualifying small businesses to retain jobs and cover certain other expenses.
Pan, the government says, schemed to defraud the SBA, multiple financial institutions and others by submitting false loan applications to obtain PPP funds.
He is facing charges of wire fraud, bank fraud and engaging in unlawful monetary transactions.
According to prosecutors, Pan submitted 14 PPP loan applications supported by false statements about the companies' employees and payroll expenses, as well as fake documents and falsified tax filings. Pan sought more than $6.1 million, and received over $1.7 million in benefits after his applications for the Pan Insurance Agency and White Walker were approved.
The government says it has been able to clawback some of the purportedly fraudulent loan benefits.
Pan was arrested Tuesday and made his initial court appearance before U.S. Magistrate Judge Robert T. Numbers in Raleigh. He was ordered released without bond, according to the U.S. Attorney's Office for the Eastern District of North Carolina.
An attorney for Pan did not immediately respond to a request for comment.
The government is represented by Ethan A. Ontjes and John Harris of the U.S. Attorney's Office for the Eastern District of North Carolina and Justin M. Woodard of the U.S. Department of Justice's Fraud Section.
Pan is represented by Joe Zeszotarski of Gammon Howard & Zeszotarski.
The case is U.S. v. Pan, case number 5:20-cr-00436, in the U.S. District Court for the Eastern District of North Carolina.
--Editing by Bruce Goldman.
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