RICHMOND, Va. – A Glen Allen man pleaded responsible today to committing wire fraud and generating false statements to a federally insured bank throughout a two-calendar year scheme to defraud each a Pennsylvania-based mostly financial institution and the Export-Import Financial institution of the United States in connection with a $1.6 million financial loan.
In accordance to court documents, Tae Il Lee, 41, was the Managing Director of New Earth Team, a Richmond-based mostly firm engaged in the business enterprise of exporting American treats and other foods stuffs to worldwide customers (ordinarily South Korean organizations). In April 2016, Lee sought what eventually grew to become a $1.6 million loan from Very first Countrywide Lender of Pennsylvania, relying on the “Working Cash Program” presented by the Export-Import Lender of the United States (EXIM Lender). Under the method, EXIM certain to give financial backing for the personal loan in the function that New Globe Team defaulted.
More than the following two decades, Lee often furnished To start with Nationwide Lender, and the bank’s auditing company, with fiscal documents that purported to show New Environment Group’s accounts receivable, banking statements, and economic statements. These files reflected that New Environment Group was a developing, thriving export firm, grossing extra than $6 million in export income in 2017 and a different $6.3 million in just the 1st number of months of 2018. Lee admitted in court now that people files ended up fake.
In accordance to courtroom paperwork, Lee experienced made fictitious accounts receivable and fiscal statements, and doctored New Environment Group’s precise financial institution statements to show non-existent, large-dollar transactions that under no circumstances took place. During the system of his fraud scheme, Lee also created a fictitious intermediary—a purported personnel of New World Group—in purchase to account for delays in Lee’s communications with First Nationwide Financial institution.
In the spring of 2018, To start with Countrywide Bank issued a desire letter for the $1.6 million bank loan to New Globe Team. New Environment Team under no circumstances finished any payments to Initially Countrywide Bank, which asked for that EXIM cover the defaulted loan. EXIM did so, absorbing the $1.6 million loss.
Lee is scheduled to be sentenced on May perhaps 12, 2021. He faces a greatest penalty of 20 several years in prison for wire fraud and 30 a long time in prison for generating phony statements to a federally insured bank. Precise sentences for federal crimes are normally fewer than the highest penalties. A federal district courtroom decide will identify any sentence just after getting into account the U.S. Sentencing Pointers and other statutory factors.
Raj Parekh, Acting U.S. Lawyer for the Jap District of Virginia, and Jennifer Fain, Acting Inspector Normal for the Export-Import Financial institution of the United States, built the announcement immediately after U.S. District Choose David J. Novak recognized the plea.
Assistant U.S. Lawyers Thomas A. Garnett and Kaitlin G. Cooke are prosecuting the situation.
This issue was investigated by the EXIM Business office of Inspector Basic (OIG). EXIM is the official export credit score company of the United States and assists in funding the export of U.S. products and companies to international marketplaces. Issues and reviews of waste, fraud, and abuse similar to EXIM plans and functions can be reported to the OIG hotline at 888-OIG-EXIM (888-644-3946) or by way of e mail at [email protected]
A duplicate of this push release is situated on the website of the U.S. Attorney’s Business for the Eastern District of Virginia. Associated court docket documents and information and facts are found on the web site of the District Courtroom for the Japanese District of Virginia or on PACER by searching for Situation No. 3:21-cr-2.