Former Employer in Jail – How to Explain During Background Check?

Hi everyone. In need of some advice regarding background checks.

During my sophomore school year, I did a part-time remote internship at an extremely sketchy IB firm called NYIC (New York International Capital). I took it because there was literally nothing else I could get and I really wanted to have some sort of IB experience to beef up my resume. Had a pretty meh experience at the firm – lots of outreach emails to various companies asking to do capital raises. Did the internship for a semester and did not return after my end date.

I am now in the midst of SA2021 recruiting and saw an article stating that the CEO of NYIC is in jail for making some false claims about his company to get COVID PPP loans (Source: https://www.justice.gov/usao-sdny/pr/chinese-nati…).

This threw me for a loop. I have no idea how this will look if I receive an offer and HR does a background check only to find that the CEO of one of my previous listed experiences is literally sitting in jail. Obviously, I didn’t do anything illegal during my internship. I was given assignments of firms to reach out to asking if they needed capital raises or if they were interested in investing in NYIC’s client companies. I honestly did not even know this happened until a few days ago. Do any of you have insight on what I should do or steps I should take? My resume has already been submitted so I’m a bit worried.