Westminster Businessman and Police Officer Arrested in Loan Sharking Scheme
|FBI Los Angeles August 30, 2013|
WESTMINSTER—The FBI arrested two men today for a loan sharking scheme in Orange County, announced Bill L. Lewis, Assistant Director in Charge of the FBI’s Los Angeles Field Office, and André Birotte Jr., the United States Attorney for the Central District of California.
Kevin Khanh Tuan Do, 38, of Fountain Valley, and Anthony Duong Donner, 28, of Westminster, were arrested this morning without incident, following a meeting at the Westminster Police Department. Do is the owner of Do’s Construction and Design located in Westminster, California. Donner is a patrol officer with the Westminster Police Department, who is currently on administrative leave.
Do and Donner were charged in a criminal complaint filed in United States District Court in Santa Ana today with collecting extensions of credit by extortionate means, a violation of Title 18, United States Code, Section 894.
According to the complaint, Do operated an illegal lending and collection business which he and others allegedly enforced by using intimidation and threats. The complaint alleges that Donner, who worked for Do, used his authority as a police officer in order to enforce the collection of payment. In 2012, a government investigation uncovered the loan sharking operation and an investigation of Do and Donner was initiated, resulting in today’s arrests.
The complaint details a situation in which a victim, identified in the complaint only as a business owner and by the initials, “H.L.,” obtained loans from Do in the amount of $170,000 and later made incremental payments at a rate of five percent per month and 60 percent annually. From 2011 through 2013, H.L. made approximately $168,000 in payments to Do, all of which were considered by Do to be interest payments, with none of the money paid toward the principal of the loans, according to the complaint. When H.L. was unable to make payments to Do, Do allegedly instructed Donner to take police enforcement actions against H.L.’s business.
If convicted of the charge in the complaint, the defendants face a statutory maximum penalty of 20 years in federal prison and a fine of $250,000.
Do and Donner were in federal court in Santa Ana today for an initial appearance and released on bond. A preliminary hearing has been scheduled for September 20, 2013, and a post-indictment arraignment has been scheduled for September 23, 2013.
This ongoing investigation is being conducted by the Federal Bureau of Investigation. Personnel with the Westminster Police Department fully cooperated and assisted during this investigation.
Do and Donner are being prosecuted by the United States Attorney’s Office in Orange County.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
- Assistant United States Attorney Brett Sagel: 714-338-3598
- Assistant United States Attorney Joseph McNally: 714-338-3590
- FBI Press Relations: 310-996-3343