Former Citi, WSFS loan officer pleads guilty to bank fraud charges

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A former local loan officer has pleaded guilty to federal bank fraud charges in a case that also involves an Elkton physician and medical center owner.

Tae H. Kim, age 47 of Wayne, PA entered a guilty plea to separate bank fraud charges filed in the District of Delaware and the District of Maryland,

In regard to the Delaware charge, Kim admitted that he conspired with his client, Dr. Zahid Aslam[ to obtain loans from Citibank and WSFS Bank under false pretenses.(See story below regarding Aslam.

Elkton physician faces federal bank fraud charges in case involving WSFS

According to prosecutors, Kim admitted that he and Aslam agreed to submit loan requests in the names of third parties when they knew that the loan proceeds would be controlled by Aslam.

The loans consisted of a $1.76 million loan funded by Citibank (and guaranteed by the Small Business Administration) in July 2012, and a $2.183 million loan funded by WSFS Bank in August 2013.

Prosecutors stated that Kim failed to disclose to Citibank and WSFS Bank the existence of a business relationship with Aslam, as well as his receipt of a $60,000 loan and a BMW from Aslam, during the period in which he acted as his loan officer. As part of his guilty plea, Kim agreed to forfeit the BMW and $60,000 in cash.

In the Maryland case Kim admitted that he submitted a false “Request for Verification of Deposit” form on behalf of Aslam, who had requested a $5 million loan from Cecil Bank in Maryland for a separate business venture.

Although the Verification of Deposit Form represented that Dr. Aslam had maintained a checking account for the business, with an average balance of $1.6 million, Kim admitted that the account had been opened the day before he submitted the form and funded via a single check from a different entity controlled by the physician.

The Verification of Deposit Form was significant because Cecil Bank had determined that the business needed to show proof of equity or cash on hand of at least $1.38 million to qualify for a Small Business Administration Guarantee.

Although Cecil Bank approved the $5 million loan, the loan was never funded because the Small Business Administration determined that the loan did not qualify for the guarantee.

United States Judge Richard G. Andrews Scheduled sentencing for January 11, 2018.

The Maryland and Delaware cases each carry a maximum of 30 years in prison as well as millions of dollars in fines.

Acting U.S. Attorney for Delaware David Weiss said, “Tae Kim abused his position as a loan officer by defrauding three financial institutions and the Small Business Administration for the benefit of a key client. He further leveraged his position to profit personally from an extensive business relationship with that client, all of which he concealed from his employers. I applaud the diligence of federal law enforcement in Delaware and Maryland in uncovering the breadth and scope of Kim’s criminal conduct. Our office remains committed to ensuring the integrity of the federal banking system.”

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