WSFS reported in a Securities and Exchange Commission filing that loans with a physician facing federal bank fraud charges have not moved to the nonperforming category.
WSFS confirmed that in addition to customer Dr. Zahid Aslam of Elkton, charges were filed against former WSFS loan officer Tae Kim.
Aslam owns Alpha Health Center,s a group of various medical practices and businesses that are housed in a former Walmart store in Elkton, MD.
Aslam, an OBGYN, who has practices in adjoining states that included Delaware, faces maximum penalties that could total 90 years.
Kim served as a WSFS Associate from 2013 to 2016 and was the relationship manager for Aslam.
“WSFS conducted a thorough investigation into this matter, which included a complete review of all loans originated by Mr. Kim while he was employed at WSFS. To date, the investigation has determined that the loan fraud scheme was isolated to Mr. Kim’s dealings with Dr. Aslam and that the loans were used to finance Dr. Aslam’s purchase of existing and ongoing medical businesses, which currently appear to be viable operating businesses,” the SEC filing stated.
As of May 31, WSFS’ total exposure to the customer was $4.8 million.
“At the end of the first quarter of this year loan relationships were performing and considered in quarter-end loan loss reserve evaluations,” the filing stated.
The statement continued, “Although WSFS cannot predict whether it will ultimately incur losses in connection with this matter, it plans to pursue all available remedies to protect the Company’s interests and currently does not expect that this matter will have a material adverse effect on the Company. WSFS has provided notice to its insurance carriers in the event a loss occurs.”
