Dallas-Area Lawyer Sentenced for Covering Up Bank Fraud
|U.S. Attorney’s Office February 24, 2014|
DALLAS—An Allen, Texas man, who pleaded guilty in April 2013 to one count of a misprision of a felony stemming from his involvement in a loan fraud scheme was sentenced this morning by U.S. District Judge David C. Godbey, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Jerry Goh, 51, a lawyer with offices in the Dallas-Fort Worth metroplex, was sentenced to serve seven months in federal prison and surrender to the Bureau of Prisons on May 26, 2014, to begin serving that sentence. Judge Godbey also ordered that Goh serve the first seven months of a one-year term of supervised release on home confinement. Goh will also be ordered to pay more than $2.1 million in restitution.
Two defendants also charged in the case, Plano, Texas, residents Vathany Teng and Lina Ma, have pleaded guilty to their roles in the fraud and are scheduled to be sentenced next month. According to documents filed in the case, Goh, acting in his capacity as the escrow officer on the loan, and thus with control of the loan proceeds, concealed from the lender, Prosper Bank, the fraudulent release of $498,720 of loan proceeds to provide funds for a $431,000 down payment. Goh wired $498,720 of lender Prosper Bank’s funds from an escrow account, knowing that these seller proceeds funds would later be used as the source of borrower Lina Ma’s down payment on her loan from Prosper Bank.
This case was prosecuted in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
The case was investigated by the U.S. Small Business Administration-Office of Inspector General and the FBI. Assistant U.S. Attorney David L. Jarvis prosecuted.