Dr. Zahid Aslam, 44, a Maryland physician with a practice in Delaware and a medical center in Elkton was charged by the federal grand jury in a three-count Indictment with conspiracy to commit bank fraud and false statements on loan applications.
The charges are punishable by up to 30 years in prison on each count, although maximum sentences are rare.
The Indictment alleges that Aslam, a doctor with practices in Delaware, Maryland, New Jersey, and Pennsylvania, entered into a bank fraud scheme with Tae Kim, his loan officer at Citibank and WSFS Bank.
Kim was charged separately in the District of Maryland and in the District of Delaware.
Aslam has also been involved in various civil matters and a medical disciplinary case in Maryland, Cecil Daily reported.
According to the complaint, Aslam owns the Alpha Medical Center in Elkton, a former Walmart store that was converted into a medical center.
According to the Indictment, Aslam recruited two other associates to misrepresent in loan applications that they were the true borrowers and operators of medical practices, when, in actuality, Aslam owned and operated the practices and ultimately controlled the loan proceeds.
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The Indictment alleges that Aslam used the third parties to apply for the loans including a Small Business Administration loan because Aslam knew that he would not otherwise qualify for financing had he applied on his own behalf.
In addition, the Indictment alleges that Aslam and Kim concealed the existence of a financial relationship between the two individuals from Citibank and WSFS during the period in which Kim acted as Aslam’s loan officer, including their joint ownership of businesses, as well as large cash payments and a BMW sedan that Aslam provided to Kim.
Acting U.S. Attorney for Delaware David Weiss said, “The indictment alleges that the defendant defrauded two financial institutions by misrepresenting the actual owners and operators of two medical practices and by failing to disclose a significant financial relationship with his former loan officer. It is critical that borrowers provide accurate information to financial institutions and our office is committed to prosecuting those who fail to do so.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorneys Robert F. Kravetz and Jennifer L. Hall.
