Mug Shot Monday – Jail for Three in Equity Injection SBA Loan Fraud
June 2, 2014
By Bob Coleman
Editor, Coleman Report
Texas residents, Vathany Teng, 43, and Lina Ma, 55, were sentenced for their role in a $3 million SBA loan fraud scheme in 2007 and 2008.
U.S. District Judge David C. Godbey sentenced Teng to 27 months and Ma was sentenced to 18 months in prison.
Both Teng and Ma pleaded guilty to one count of conspiracy to commit bank fraud.
The other defendant in the case, Jerry Goh, 51, a lawyer who acted as an escrow officer for Prosper Bank, pleaded guilty to one count of misprision of a felony and was sentenced to seven months in prison.
The scheme involved making false representations and deliberate omissions of material information when fraudulent loan applications were submitted to Prosper Bank and United Central Bank.
Goh, acting in his capacity as the escrow officer on the Prosper Bank loan, and thus with control of the loan proceeds, concealed from lender Prosper Bank the fraudulent release of $498,720 of loan proceeds to provide funds for a $431,000 down payment. Goh wired $498,720 of lender Prosper Bank’s funds from an escrow account, knowing that these seller proceeds funds would later be used as the source of borrower Ma’s down payment on her loan from Prosper Bank.