![]() ![]() Loan officer Jin Hua “Jenny” Zhang has been charged by felony complaint with Falsifying Business Records in the First Degree and related charges. Loan officers Qibin “Ken” Yu, Ruo Lan “Julie” Chen, Lien “Liliy” Quach, Xiaomin “Jane” Huang, and Yim “Katy” Cheng all previously pleaded guilty to felonies for their participation in this scheme. The loan originators charged in the indictment were: Wen Fang “Fanny” Wang, Ying Chuan “Shelley” Wang, Jie Qiong “Michelle” Nan, Chi Fung “Danny” Lau, and Phoebe Lee. Loan officers are charged with creating false gift letters to obscure the source of the borrowers’ down payments and disguise borrowers’ liabilities as assets. According to the indictment, originators coached borrowers to inflate their income, assets, and job titles, and to falsify Verification of Employment forms. ![]() Managers also encouraged loan officers and processors to be discreet by making sure that the falsified information would be believable in the eyes of the Bank’s regulator, the Office of the Comptroller of the Currency, as well as Fannie Mae.Ībacus loan originators, also called loan officers, are accused of regularly instructing prospective borrowers to make misrepresentations in their loan applications and often authored falsified documents themselves. According to the indictment, these Abacus managers trained lower level employees that the accuracy of loan application information was immaterial what mattered was making sure that borrowers were able to obtain Fannie Mae-backed mortgages. Also charged in the indictment is Wai Hung “Raymond” Tam, the Loan Origination Supervisor. Wong was the most senior Loan Department manager and reported directly to the Bank’s CEO. All of these units and several of the branches were implicated in the conspiracy.Ĭharged in the indictment is Yiu Wah Wong, who served as the Bank’s Chief Credit Officer, Vice President, and Underwriting Supervisor. ![]() The loan department at Abacus consisted of three separate units: loan origination, processing, and underwriting. The Bank operates seven branches across New York City, New Jersey, and Pennsylvania, and primarily serves the Chinese-American community. As a result of the hundreds of millions of dollars in charged fraudulent loans, Abacus earned many millions of dollars in loan origination, purchasing, and servicing fees over the five-year period covered by the indictment.Ībacus is a federally-chartered deposit and lending institution headquartered at 6 Bowery Street, Chinatown, New York. After purchasing these fraudulent mortgages, Fannie Mae repackaged them into mortgage-backed securities and sold them to outside investors. The defendants falsified these documents so that they could earn commissions and fees by ensuring that otherwise unqualified borrowers would receive loans, which Abacus then sold to Fannie Mae pursuant to an ongoing agreement. The indictment, representing the culmination of a two-and-a-half-year investigation, charges that Abacus, its employees, and its managers engaged in a conspiracy involving the regular and systematic falsification of residential mortgage application documents. Each defendant faces charges related to his or her involvement in the criminal conspiracy, which the indictment charges occurred between May 2005 and February 2010. The defendants include former senior managers, as well as former employees who worked in various capacities for the Bank’s lending business. The 184-count indictment charges eleven individuals and Abacus itself with residential mortgage fraud, securities fraud, grand larceny, conspiracy, and falsifying business records, among other related charges. Abacus Federal Savings Bank and eleven of its former employees in a false document mortgage fraud scheme resulting in the sale of hundreds of millions of dollars worth of fraudulent loans to the Federal National Mortgage Association, commonly known as “Fannie Mae.” An additional eight former employees have already waived indictment and admitted their guilt in connection with this conspiracy. ![]()
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