Fugitive Loan Broker Extradited from South Korea Pleads Guilty to Federal Bank Fraud Conspiracy to

[TexasTowelie]

Fugitive Loan Broker Extradited from South Korea Pleads Guilty to Federal Bank Fraud Conspiracy to Fraudulently Obtain Over $100 Million in SBA-Backed Business Loans

Defendant Expected to be Sentenced to 9 Years in Federal Prison


Baltimore, Maryland – Loren Young Park, age 52, formerly of Falls Church, Virginia, pleaded guilty today to conspiracy to commit bank fraud, in connection with a scheme to fraudulently obtain business loans guaranteed by the Small Business Administration (SBA), with resulting losses of over $100 million. Loren Park was a fugitive for eight years and was extradited from South Korea to face these charges.

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Small Business Administration Inspector General Hannibal “Mike” Ware; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation.

“Our financial system is based on trust,” said U.S. Attorney Robert K. Hur. “Loren Park and his co-conspirators lied during every aspect of the loan process, cheating taxpayers and lenders, causing more than $100 million in losses, and hurting the chances of future small business owners to obtain loans. I am grateful for the patience and diligence of our law enforcement partners to get Loren Park back from South Korea and bring him to justice.”

According to his plea agreement and other court documents, Loren Park and his brother, Joon Park, owned and operated Jade Capital. Jade Capital brokered small business loans, among other services, for clients and on behalf of Loren Park, Joon Park and their family. According to the plea agreement, Loren and Joon Park and others under their direction encouraged prospective borrowers using the services of Jade Capital to apply for business loans through the SBA’s Section 7(a) program, which guaranteed 75% - 90% of qualified loans made by banks and other commercial lending institutions. Under this program, the principals of the small business seeking the loan were required to invest a certain amount of their own money, called an equity injection, before they qualified for a loan. The banks and other lending institutions making the loan bore the risk of payment default only up to the percentage of the loan not guaranteed by the SBA.

Read more: https://www.justice.gov/usao-md/pr/fugitive-loan-broker-extradited-south-korea-pleads-guilty-federal-bank-fraud-conspiracy