Fraud Friday — SBA 7(a) Loan Broker Indicted for Bribing La Jolla Bank SBA Manager

August 13, 2015

By Bob Coleman
Editor, Coleman Report

bribeLast week, San Diego-based loan broker Jocelyn Brown was arrested on three counts of bank fraud for bribing an unnamed SBA manager of FDIC-seized La Jolla Bank.

The FBI says Jocelyn and the SBA manager made a deal where Jocelyn would pay a portion of her commissions back to the SBA manager, in cash, after her clients’ loans were funded.

In turn, the SBA manager would make sure that Jocelyn’s clients’ loans were approved so that Jocelyn could continue collecting tens of thousands of dollars in commission payments. In addition, the bank manager arranged to pay Jocelyn a fraudulent $30,000 “commission” for a loan she in fact had no part in brokering or referring to the bank.

Jocelyn went so far as to generate a fake invoice, pretending that she had earned the commission. After she was paid, Jocelyn cashed the $30,000 check and gave a portion of the cash to the bank manager.

Jocelyn is charged with conspiracy, bank bribery and making a false statement to a cop.

Always with the lying.

Says the FBI, “Brown and the SBA manager allegedly agreed to conceal these bribe payments by hiding the commissions from borrowers, making the payments in cash, and lying to law enforcement agents if they were asked about the payments. In fact, the indictment charges, Brown did lie to law enforcement to conceal the conspiracy. Despite the fact that she and the SBA manager traded several phone calls and text messages and had a sit-down meeting in June 2014, Brown falsely reported to federal agents in September 2014 that she had not spoken to or seen the bank manager since before she learned about the federal investigation.”

Jocelyn faces 40 years in jail and millions of dollars fines.

Usually we quote SIGTARP, but today SBA’s Inspector General Peggy Gustafson gets the nod, “Today’s indictment is a reminder that those who corrupt the banking system and place the integrity of government programs at risk will be brought to justice and held accountable for their actions. Lies by individuals that are afforded a degree of trust by virtue of their professions are particularly egregious. I want to thank the U.S. Attorney’s Office for its dedicated leadership and professionalism in the pursuit of justice in this matter.”

In an unusual call for information from the community, I publish the following, “These charges are the result of an active, ongoing criminal investigation. Anyone with information relating to these charges should contact the San Diego branch of the Federal Bureau of Investigation at (858) 320-1800.”

Jocelyn is released on $20,000 bail and ordered to turn in her passport to the court.