Former Managing Director and Two Former Loan Officers Pled Guilty to Widespread Banking Fraud | OPA



The former managing director of home loans and two former loan officers of a financial institution headquartered in Southfield, Michigan, have pleaded guilty to being involved in a multi-year home mortgage loan fraudulent mortgage scheme under the little-documented Advantage Loan Program.

According to court documents and statements made in court, 39-year-old YiHou Han from San Francisco, California, Hao Liang “Frank” Hu, 48, from Chino Hills, California, and Amy Lu, 33, from Brea, California caused the filing of fraudulent loan applications with a financial institution called Financial Institution A under the Advantage Loan Program, which led to the issuance of loans. Han worked as a Senior Loan Officer and later as Managing Director of Home Loans at Financial Institution A, while Hu and Lu were Home Loan Specialists. At various times during the conspiracy that lasted from 2011 to 2019, Han, Hu, and Lu falsified and falsified borrowers’ income and debt-to-income ratios, job titles, employment history and supporting documents, among others. As part of the scheme, they instructed borrowers to fabricate deposit histories and transfer funds to third parties, who would then transfer funds back to borrowers as “gifts” to hide the true source of funds and promote the underlying fraudulent scheme. Han, Hu and Lu also deliberately facilitated the approval of loans to borrowers involved in money laundering and tax evasion.

As part of her plea, Khan admitted that she and her associates undermined Financial Institution A’s ability to implement effective anti-money laundering measures to monitor, investigate and report potentially suspicious activity involving borrowers in the Advantage Loan Program. Khan also acknowledged that her falsification of documents and material information about borrowers’ qualifications to participate in the Advantage Loan Program was done with the knowledge and encouragement of members of the senior management of Financial Institution A in order to increase the volume of loans disbursed under the Advantage Loan Program. which, in turn, increased the bank’s income and personal commissions of accomplices.

During the conspiracy, Khan issued at least 1,288 Advantage loans, Hu at least 825 Advantage loans, and Lu at least 358 Advantage loans, for a total of at least 2,471 loans and over $ 876 million in loan from Financial Institution A Han, Hu, and Lu admitted that the vast majority of these loans were based on one or more fraudulent activities and that Han earned approximately $ 3,381,355.26 in commissions from these fraudulent loans, Hu earned approximately $ 2,519,488.98 in commissions, and Lou made approximately $ 990,847.58 in commissions.

Khan pleaded guilty to one count of conspiracy to commit banking and electronic fraud, while Lu previously pleaded guilty to one count of conspiracy to commit banking and electronic fraud, and Hu previously pleaded guilty to one count of conspiracy to commit bank fraud and telegraph fraud. fraud. Han is to be convicted on August 18, 2021, and Liu and Hu are to be convicted on June 28, 2021 and June 27, 2022, respectively. Liu faces a maximum sentence of five years in prison, while Hu and Han face a maximum of 30 years in prison. A judge in a federal district court makes a sentence after considering the US Sentencing Guidelines and other regulatory factors.

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Deputy Director Christie K. Johnson of the FBI Field Office in Los Angeles; Inspector in charge Delaney De Leon-Colon of the United States Postal Inspection Service (USPIS) Criminal Investigation Team; Acting Special Agent Francis Mays of the Office of the Inspector General of the Federal Deposit Insurance Corporation (FDIC-OIG), San Francisco Region; and Special Agent Scott C. Readington of the Office of the Inspector General of the Board of Governors of the Federal Reserve Board and the Consumer Financial Protection Bureau (CFPB) of the West San Francisco Branch.

The case was investigated by the FBI, USPIS, FDIC-OIG and the OIG Board of Governors of the Federal Reserve and CFPB.

Legal attorneys Kevin Lowell and Jason Covert of the Criminal Division’s Anti-Fraud Division are prosecuting.


Source link