Mugshot Monday: Loan Brokers Fraud Conspiracy Costs SBA Over $13 million

Between 2005 and 2011, two loan brokers’ fraud scheme to mask equity injection cost the SBA some $13 million.

This week’s Mugshot Monday story focuses on Joo Hyuk Lee and San Hyn Kim, SBA loan brokers at Virginia-based Jade Capital & Investments LLC.

According to prosecutors, at various times between 2005 and 2011, Kim and Lee submitted fraudulent bank statements as evidence to the SBA of equity injections in numerous transactions. Specifically, they altered bank statements to make it appear as though the prospective borrowers had more money in their accounts then they actually did. They even went as far as ordering another bank employee to prepare a fraudulent cashier’s check as further evidence of equity.

The results of their actions ended up costing the SBA more than $13 million. Lee and Kim were sentenced this week to three years in prison, followed by five years of supervised release.