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Orange County Couple Sentenced for $4.7 Million Bank Heist
SANTA ANA, California – A husband and wife from Newport Coast have been sentenced to federal prison for defrauding a consortium of seven banks, including Bank of America, in connection with a $130 million line of credit.
Thomas Chia Fu, 64, was sentenced yesterday to 21 months in federal prison. Fu’s wife, Cheri L. Shyu (also known as Cheri Fu), 61, was sentenced on March 4 to three years in federal prison.
United States District Judge Cormac J. Carney ordered the Fus to pay $4.7 million in restitution, the amount banks suffered in losses on the revolving line of credit from October 2008 to July 2009. The couple owned Anaheim-based Galleria USA, Inc., which imported home decor items manufactured in China.
In connection with the revolving line of credit, the couple overstated by tens of millions of dollars the accounts receivables of the company, lying to the banks in order to continue borrowing funds. When they pleaded guilty last year, the Fus admitted to falsifying the accounts receivable amounts by a factor of 10 or more times the actual amount purchased.
“Bank fraud is not a victimless crime as it has detrimental effects on both creditors and consumers,” said United States Attorney André Birotte Jr. “The Fus plundered a consortium of banks, which deprived legitimate customers from having access to those funds and caused the financial institutions to suffer millions of dollars in losses.”
The case was investigated by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Federal Bureau of Investigation, and the United States Secret Service. “At a time when taxpayers were bailing out Bank of America and United Commercial Bank with TARP funds, Thomas and Cheri Fu defrauded those banks and others out of nearly $5 million,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Illegally profiting from the TARP bailout is reprehensible and will be met with swift justice by SIGTARP and our law enforcement partners.”
RELATED: Ornelas Gets 190 Years for Philippine Child Abuse
Key Facts
- State: California
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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