Loren Park, a/k/a “Loren Yong Park,” age 50, formerly of Falls Church, Virginia, is behind bars in Maryland after being extradited from South Korea, where he was arrested February 22, 2018. Park faces federal charges in a sprawling bank fraud scheme that bilked the Small Business Administration out of more than $100 million through falsified loan applications and forged financial records.
The case traces back to 2011, when a federal grand jury indicted Park, his brother Yong Park of Falls Church, Virginia, and Nick Park of McLean, Virginia, on conspiracy to commit bank fraud. The trio allegedly exploited the SBA’s Section 7(a) loan program, which guarantees 75% to 90% of qualifying business loans, by submitting fraudulent applications on behalf of clients seeking to buy or refinance small businesses across the Mid-Atlantic region.
At the center of the scam was Jade Capital & Investments, LLC, a loan brokerage operated by Joon and Loren Park. The indictment claims the Parks encouraged borrowers to apply for SBA-backed loans while requiring them to make equity injections—personal investments meant to reduce lender risk. But instead of honest paperwork, the Parks allegedly submitted falsified personal financial statements, doctored bank statements, and fake gift letters to inflate borrowers’ net worth and down payments.
Investigators say Loren and Joon Park altered real bank statements to show higher balances, fabricated statements for non-existent accounts, and supplied misleading summaries of borrowers’ business experience to make them appear more creditworthy. They also charged double fees—billing both lenders and borrowers—for assembling loan packages built on lies. In total, the fraud misrepresented the equity injections for 51 separate SBA loan applications.
One particularly brazen act detailed in the indictment involves Joon Park, who allegedly submitted fake financial documents for a car wash business where he was the principal owner—directly implicating himself in the scheme. Meanwhile, all of Loren Park’s co-conspirators have since pleaded guilty, leaving him as one of the last fugitives brought to justice in the case.
The arrest was announced by Acting U.S. Attorney Stephen M. Schenning, FBI Special Agent in Charge Gordon B. Johnson, U.S. Marshal Johnny Hughes, and SBA Acting Inspector General Hannibal “Mike” Ware. Park now awaits trial in Maryland, facing years in federal prison if convicted of conspiracy to commit bank fraud in a scheme that gutted taxpayer-backed loan guarantees and shattered trust in small business financing.
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Key Facts
- State: Maryland
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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