Loan Broker Admits to $100 Million Small-Business Fraud
On November 8, 2011, U.S. Attorney Rod Rosenstein filed an indictment of conspiracy to commit bank fraud against Joon Park. Park was the chief operator of Jade Capital & Investments LLC, a Virginia-based loan brokerage company. According to the indictment, Jade Capital used fraudulent documents to persuade Small Business Administration officials to approve applications to loan originators and underwriters on behalf of its clients. Park and other conspirators would then convert the funds to personal use. This arrangement resulted in losses of over $100 million.
As a result of this illegal activity, Park received a prison sentence of more than fifteen years. He was also ordered by the U.S. District Court in Baltimore to pay a monetary judgment of more than $90 million.
The Small Business Administration is a U.S. government agency that provides loans and support to entrepreneurs and small businesses. When people like Mr. Park commit fraud against the SBA, the department’s programs cannot work effectively and achieve their intended benefits. If you are aware of fraud upon the SBA or other government agencies, you may have a basis for filing a qui-tam lawsuit. Whistleblowers in qui-tam lawsuits can receive a significant proportion of any monetary settlements or judgments recovered by the Government against those guilty of fraud. They should be applauded for risking their livelihoods to expose fraudulent activities and eradicate crime.
For more information on how to file your qui tam lawsuit, please call (202) 973-0900 or fill out a Confidential Case Evaluation form.