FBI: Falls Church Loan Broker Pleads Guilty to $100 Million Scam

A former Falls Church loan broker who tried to get $100 million in Small Business Administration loans is facing 30 years in prison after pleading guilty Tuesday in U.S. District Court in Maryland, the FBI reported.

Five others connected to the scheme are also facing prison time and restitution.

Joon Park, 43, pleaded guilty to conspiracy to commit bank fraud, in connection with a scheme to fraudulently obtain business loans guaranteed by the SBA, according to an FBI press release. 

“SBA underwriters approved $100 million in business loans brokered by Jade Capital based on fraudulent bank statements, checks, gift letters, resumes and tax returns that made it appear as if the borrowers had invested money in the businesses,” U.S. Attorney Rod J. Rosenstein said in the release. “When borrowers and brokers submit false information and fraudulent documents, the underwriting process is defeated and the taxpayers bear the loss.”

Park and his brother, Loren Park, owned and operated Jade Capital in Maryland and specialized in securing loans for individuals looking to refinance or purchase small business in the Mid-Atlantic, according to the FBI. The brothers allegedly encouraged prospective borrowers to apply for business loans through the SBA’s Section 7(a) program, which guaranteed 75 percent – 90 percent of qualified loans made by banks and other commercial lending institutions, according to the release.

Joon Park admitted between 2003 and October 2011 that he and others under his direction submitted SBA loan applications and supporting documentation to loan originators and underwriters on behalf of their clients, according to the release. Altered bank statements and counterfeit cashier’s checks were among the documents submitted.

Joon Park could get a maximum of 30 years in prison when he is sentenced on May 28 in U.S. District Court. He is also required to pay a money judgment of $91.4 million in restitution and forfeit all the property involved in the offense, the FBI reported. 

Nick Park, 46, of McLean, was sentenced to 33 months in prison for conspiracy to commit bank fraud for his role in the scheme, according to the release. Joo Hyuk Lee, 39, of Richmond and Sang Hyun Kim, 35, of Fairfax, were sentenced to three years in prison also for conspiracy to commit bank fraud. 

In Jung Ham, 30, of Fairfax, was sentenced to a year and a day in prison, for her role in the scheme. Ham was ordered to pay restitution of $216,472.92.  Lee, Kim and Ham were also ordered to forfeit the proceeds of the scheme and pay money judgments of $18,764,900, $13,432,000 and $15,725,000, respectively, according to the release.