FBI Catches Home Loan Scammer
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UPDATED: Oct 8, 2012
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David Han from Tujunga, California was sentenced on the morning of Oct. 2 to 37 months in federal prison for participating in a fraudulent home loan scheme that resulted in losses of over $1 million.
At sentencing, United States District Judge Manuel L. Real ordered Han to pay $1,065,000 in restitution.
Back in May, Han pled guilty to four counts of bank fraud based on the submission of home financing applications to four different banks. The home loan applications were submitted under the false alias of “Young He Kim.” Additionally, the home financing applications were all secured by the same property.
In the lending process, property is often given over as collateral in order to secure money to purchase a home. In the event of a default, the lender—in this case, all four banks—can repossess the property.
But Han deceptively submitted all of the applications at the same time in a “shotgun” method. Doing so allowed him to obtain both approval and funding from each bank before any of the banks recorded liens on the same property.
On top of these crimes and abuses, Han falsely represented information on his home financing application concerning his employer, employment status and the amount of his income.
Once Han had received the loans, he deposited the money into bank accounts that had been created under the name of his alias “Young He Kim.” Han then proceeded to purchase cashier checks in order to withdraw his illegally obtained funds.
After obtaining more than $700,000 in home financing proceeds, Han sent counterfeit checks to the banks as partial loan-repayments. This prompted the banks to send additional funds to Han. Repeating this process allowed Han to obtain an additional $300,000 before the victimized banks finally realized that the checks were counterfeit.
The FBI pursued and caught Han after conducting an investigation of the checks.