Fraud Friday — Houston Banker Accused of Million Dollar Loan Fraud

May 29, 2026

Ernest Mo, a banker in Houston,  was arrested on May 4, 2026, for loan fraud. 

According to the U.S. Attorney, he acted as an insider bank loan officer on millions of dollars in fraudulent loans as part of a large-scale bank fraud scheme.

Mo was employed as a loan officer by various Texas financial institutions, including PSB. The banks’ names are masked in the indictment and identified only by the initials PSB and HWBank.

Federal prosecutors say that Mo prepared false and fraudulent documents, including income tax returns, financial statements, bank account statements, and equipment invoices, to obtain loans from one or more of the victim banks. 

Prosecutors further allege that he collected money from fraudulently obtained loan proceeds for his own benefit and the benefit of other co-conspirators, including fees or “kickbacks” for facilitating approval of fraudulent loans from victim financial institutions where he was employed.

Mo also owned two companies, Bosslong Inc. and SCY Holdings LLC.

He worked with a crew that included a CPA and a restaurant equipment dealer identified in the indictment only as JW and BD.

According to the indictment, co-conspirator JW coordinated with Mo regarding the numbers to be entered on fraudulent tax returns. On July 17, 2018, PSB approved a $1,000,000 line of credit for *** Utilities based on the fraudulent tax returns prepared by co-conspirator JW.

On July 19, 2018, co-conspirator BD wrote a check to SCY Holdings, Inc. from *** Utilities’ $1,000,000 line of credit from PSB.

Several years later, while employed by PSB, Mo, the indictment says, submitted a fake invoice from BD to HWBank on December 5, 2022, for $38,745 for the purchase of restaurant equipment. The Feds alleged he cashed the check through his company, Bosslong, Inc., which operates a Smoothie King in the Houston Galleria.