Newport Coast, Orange County - In the past few years, a number of financial crimes involving respected members of the community have been well-publicized by the media. The government has continued to crack down on these types of offenses, relentlessly investigating and building these complex cases in hopes of obtaining severe penalties for the accused individuals.
Last week it was reported that a couple, Thomas Chia Fu, 61, and his wife Cheri L. Shyu, 48, of Newport Coast was arrested at their home after being indicted on federal charges of defrauding a group of 8 banks out of $130 million. Bank of America was included as one of the banks.
On March 9, the federal grand jury had returned the 9 count bank fraud indictment.
The Fus owned a company in Anaheim called Galleria USA, Inc. which imported home décor items manufactured in China. Defendants obtained a 130 million dollar revolving line of credit for Galleria from a total of 8 banks. The Fus were able to obtain this extraordinary line of credit by exaggerating and falsifying more than 100 times about the companies in-transit inventory and accounts receivables.
If convicted, the Fus could face and carries a statutory maximum sentence of 30-years in federal prison for each charge of bank fraud. This case has drawn the attention and is further being investigated by the Office of the Special Inspector General for the Troubled Asset Relief Program (TARP), the FBI, and the United States Secret Service.
According to Federal Bank Fraud Defense Lawyers, Michael Guisti states that bank fraud offense includes False Entries in Financial Institution or Holding Company Records, regulated by 18 U.S.C. Sections 1005, 1006. Under this statute, it is a crime for bank or holding company employees to make any false entry in bank documents with the intent to defraud the bank.
Violation of this law is punishable by a fine of up to $1 million, or imprisonment of up to 30 years, or both. To make their case under this law, the government must establish that (1) the entry is false; (2) the accused either personally made or caused the entry to be made; (3) the accused knew the entry was false when it was made; and (4) the accused intended that the entry injure or defraud the financial institution or holding company or deceive any officer of such institution, company or certain public officials. Section 1006 applies to insiders acting with the intent to defraud while Section 1005 applies to any unlawful participant acting with an intent to defraud.
Why is it so important to retain a Newport Beach white collar criminal defense attorney or a Irvine criminal defense lawyer?
Since California fraud and white collar crimes are most often charged as felonies, the punishments can be long prison sentences, restitution and hefty fines. At the Law Office of Michael Guisti our skilled Orange County fraud criminal defense lawyers have been defending criminals that are facing fraud and white collar crime charges for years. We have been successful in helping clients in Orange County, Newport Beach, Irvine, Los Angeles County, Riverside County, San Bernardino County, and San Diego County.
If you have been accused of bank fraud, embezzlement, fraud or a crime, talk to Michael Guisti, an experienced California criminal lawyer first. The organization and understanding that comes with early preparation by a knowledgeable defense attorney can increase your chances of a favorable outcome, including the possibility of charges being dropped. Call Guisti at (714) 530-9690, 24/7. You'll be glad you did.
