Allegedly Caused Losses to Bank of Approximately $8.9 Million
LAWFUEL – The Law News Network – The owners of a Los Angeles County company that bought and sold waste paper and other paper goods for export were indicted in Los Angeles today on conspiracy, bank fraud, making false statements to a financial institution and money laundering charges relating to the submission of 742 fraudulent loan requests totaling nearly $58.5 million. Steven Jyegeo Shia and Jennifer Ning were indicted today in Los Angeles. Shia was the vice-president and 50% owner of Full Shine Enterprises, Inc. (Full Shine). Ning was the president and 50% owner.
The indictment alleges that Shia and Ning prepared and caused others to prepare fraudulent loan requests to be sent to a financial institution. The loan requests were allegedly fraudulent in that they claimed that Full Shine had made larger sales, and therefore earned more money, than it actually had made. They also allegedly prepared and caused others to prepare fraudulent sales and shipping documents purporting to support the loan requests. These fraudulent documents were intended to cause the financial institution to loan Full Shine more money that the financial institution would have loaned in the absence of the alleged fraud.
The indictment alleges that from July 1995 to June 2001, Shia and Ning submitted approximately 742 fraudulent loan requests, totaling nearly $58.5 million to a financial institution, along with fraudulent supporting documentation. The financial institution allegedly lost approximately $8.9 million as a result of the scheme.
The money laundering charges allege that over $310,000 in checks written on Full Shine’s accounts were deposited into the account of International Paper World, another company that bought and sold waste paper and other paper goods for export. The indictment alleges that International Paper World was nominally owned by persons other than Shia and Ning, but that Shia and Ning beneficially owned and operated International paper World.
Shia and Ning were each charged with a conspiracy count, six counts of bank fraud, four counts of making and causing false statements to be made to a financial institution and five counts of money laundering. If convicted of all charges, Shia and Ning each face a maximum sentence of 405 years of imprisonment and a maximum fine of $12,750,000.
This case is a result of an investigation by the Federal Bureau of Investigation and IRS-Criminal Investigation Division.
