RICHMOND, Va. – A Glen Allen gentleman was sentenced currently to 34 months in jail for defrauding each a Pennsylvania-centered lender and the Export-Import Bank of the United States in connection with a $1.6 million financial loan.
“For more than two a long time, the defendant deliberately deceived economical establishments to fraudulently receive a $1.6 million authorities-backed financial loan,” stated Raj Parekh, Acting U.S. Attorney for the Japanese District of Virginia. “As this case demonstrates, people who defraud American taxpayers and find to undermine the integrity of our monetary system will be held accountable for their criminal conduct.”
In accordance to court paperwork, Tae Il Lee, 41, was the Running Director of New Earth Group, a Richmond-centered firm engaged in the organization of exporting American treats and other meals stuffs to international consumers (normally South Korean corporations). In April 2016, Lee sought what finally grew to become a $1.6 million personal loan from Initial Nationwide Financial institution of Pennsylvania, relying on the “Working Funds Program” offered by the Export-Import Bank of the United States (EXIM Financial institution). Below the software, EXIM confirmed to offer monetary backing for the loan in the party that New Earth Group defaulted.
Around the next two decades, Lee on a regular basis offered 1st Countrywide Bank, and the bank’s auditing firm, with financial paperwork that purported to demonstrate New World Group’s accounts receivable, banking statements, and fiscal statements. These documents reflected that New Entire world Team was a expanding, thriving export organization, grossing more than $6 million in export income in 2017 and a further $6.3 million in just the initially several months of 2018.
These monetary paperwork, on the other hand, ended up bogus. Specifically, Lee had made fictitious accounts receivable and monetary statements, and doctored New Earth Group’s genuine bank statements to clearly show non-existent, high-dollar transactions that by no means took position. Through the program of his fraud scheme, Lee also created a fictitious intermediary—a purported personnel of New Earth Group—in order to account for delays in Lee’s communications with 1st Nationwide Lender.
In the spring of 2018, To start with Countrywide Bank issued a desire letter for the $1.6 million bank loan to New Environment Team. New Globe Group never accomplished any payments to 1st Nationwide Lender, which asked for that EXIM go over the defaulted loan. EXIM did so, absorbing the $1.6 million loss.
Lee pleaded guilty to committing wire fraud and making phony statements to a federally insured financial institution.
Raj Parekh, Acting U.S. Lawyer for the Jap District of Virginia, and Jennifer Fain, Performing Inspector Typical for the Export-Import Lender of the United States, made the announcement soon after sentencing by U.S. District Decide David J. Novak.
Assistant U.S. Attorneys Thomas A. Garnett and Kaitlin G. Cooke prosecuted the circumstance.
This make a difference was investigated by the EXIM Place of work of Inspector Standard (OIG). EXIM is the formal export credit score company of the United States and helps in financing the export of U.S. items and services to international markets. Grievances and reviews of squander, fraud, and abuse relevant to EXIM programs and functions can be described to the OIG hotline at 888-OIG-EXIM (888-644-3946) or by using e-mail at [email protected]
A duplicate of this press launch is situated on the website of the for the Japanese District of Virginia. Similar courtroom paperwork and facts are located on the web page of the District Courtroom for the Jap District of Virginia or on PACER by searching for Circumstance No. 3:21-cr-2.