Edward Shin, Bank Bribery, New York 2019

Bank CEO Convicted of Taking Bribes in Connection with Loans Guaranteed by the SBA

In a shocking turn of events, Edward Shin, the former CEO of a Pennsylvania-based bank, has been convicted of taking bribes in connection with the bank’s issuance of loans that were guaranteed by the United States Small Business Administration (SBA).

According to the indictment, Shin secretly solicited and received bribe payments in connection with SBA-guaranteed loans issued by the bank. He also arranged for the bank to issue SBA-guaranteed loans to businesses in which he secretly retained an ownership interest, in violation of SBA regulations and procedures.

The investigation, which was led by the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG), Homeland Security Investigations (HSI), the SBA Office of the Inspector General (SBA-OIG), and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), uncovered a scheme in which Shin received kickbacks from a real estate and loan broker in exchange for issuing loans to companies in which Shin had a secret interest.

One such loan, issued in June 2010, was for approximately $950,000 to a business in New York, New York. Although documents submitted to the bank for purposes of securing the loan did not mention Shin’s financial interest, the business was secretly operated as a partnership between Shin, the broker, and another individual. The loan ultimately went into default status, resulting in a loss to the bank of approximately $591,278.60.

Shin, 58, of Ambler, Pennsylvania, was convicted of one count of conspiracy to commit bank fraud and wire fraud affecting a financial institution, which carries a maximum potential sentence of 30 years in prison, one count of conspiracy to commit bank bribery, which carries a maximum potential sentence of five years in prison, one count of conspiracy to commit loan fraud, which carries a maximum potential sentence of five years in prison, one count of conspiracy to commit bank fraud, which carries a maximum potential sentence of 30 years in prison, and one count each of bank bribery, and theft of funds by a bank officer, each of which carries a maximum potential sentence of five years in prison.

The conviction is a significant blow to the banking industry, which has been plagued by scandals and corruption in recent years. It serves as a reminder of the importance of transparency and accountability in financial institutions.

The case is a joint investigation by the FDIC-OIG, HSI, the SBA-OIG, and the SIGTARP. Shin is scheduled to be sentenced on [insert date].

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