chloe
10-11-2011, 04:40 PM
Two former executives of a failed San Francisco-based bank that received a $298 million government bailout were charged with fraud Tuesday.
A federal grand jury indicted Ebrahim Shabudin and Thomas Yu on charges that they falsified corporate books, lied to auditors and conspired to hide substantial loan losses at United Commercial Bank. The bank's failure will cost the Federal Deposit Insurance Corp. $2.5 billion, prosecutors said.
In addition, United Commercial filed for bankruptcy a year after receiving $298 million from the government's Troubled Asset Relief Program in November 2008. It was the first recipient of so-called TARP money to fail.
"The bank failed and none of the $298 million in TARP funds have been repaid," said Christy Romero, acting special inspector general of the program.
Shabudin served as the bank's chief credit officer and chief operating officer until April 2009. Yu was manager of credit risk until June 2009. They are charged with misleading auditors and lying about the bank's precarious financial outlook to investors and Treasury officials determining whether United qualified for a government bailout.
Both appeared in San Francisco federal court Tuesday morning and were released on $500,000 bond each. They are scheduled to enter pleas on Oct. 20. Lawyers for both men didn't return phone calls.
In a related action Tuesday, the Securities and Exchange Commission filed civil charges against Shabudin and Yu along with the bank's former chief executive Thomas Wu, accusing them of hiding losses from United Commercial Bank's auditors so that its parent underreported 2008 operating losses by at least $65 million, or 50 percent.
The SEC also named the bank's former chief financial officer, Craig On, in its lawsuit filed in federal court in San Francisco, saying he misled the auditors and aided the filing of false financial reports by the parent company. He settled the charges by agreeing to pay a $150,000 fine and to a five-year suspension from working as an accountant for a public company. On neither admitted nor denied the SEC's allegations.
http://www.ksl.com/index.php?nid=157&sid=17626563
what a name "craig on":laugh2:
A federal grand jury indicted Ebrahim Shabudin and Thomas Yu on charges that they falsified corporate books, lied to auditors and conspired to hide substantial loan losses at United Commercial Bank. The bank's failure will cost the Federal Deposit Insurance Corp. $2.5 billion, prosecutors said.
In addition, United Commercial filed for bankruptcy a year after receiving $298 million from the government's Troubled Asset Relief Program in November 2008. It was the first recipient of so-called TARP money to fail.
"The bank failed and none of the $298 million in TARP funds have been repaid," said Christy Romero, acting special inspector general of the program.
Shabudin served as the bank's chief credit officer and chief operating officer until April 2009. Yu was manager of credit risk until June 2009. They are charged with misleading auditors and lying about the bank's precarious financial outlook to investors and Treasury officials determining whether United qualified for a government bailout.
Both appeared in San Francisco federal court Tuesday morning and were released on $500,000 bond each. They are scheduled to enter pleas on Oct. 20. Lawyers for both men didn't return phone calls.
In a related action Tuesday, the Securities and Exchange Commission filed civil charges against Shabudin and Yu along with the bank's former chief executive Thomas Wu, accusing them of hiding losses from United Commercial Bank's auditors so that its parent underreported 2008 operating losses by at least $65 million, or 50 percent.
The SEC also named the bank's former chief financial officer, Craig On, in its lawsuit filed in federal court in San Francisco, saying he misled the auditors and aided the filing of false financial reports by the parent company. He settled the charges by agreeing to pay a $150,000 fine and to a five-year suspension from working as an accountant for a public company. On neither admitted nor denied the SEC's allegations.
http://www.ksl.com/index.php?nid=157&sid=17626563
what a name "craig on":laugh2: