Please E-mail suggested additions, comments and/or corrections to Kent@MoreLaw.Com.
Date: 05-14-2021
Case Style:
Case Number: 3:21-cr-2
Judge: David J. Novak
Court: United States District Court for the Eastern District of Virginia (Henirco County)
Plaintiff's Attorney: United States District Attorney’s Office
Defendant's Attorney:
Description: Richmond, Virginia criminal defense lawyer represented Defendant charge with defrauding both a Pennsylvania-based bank and the Export-Import Bank of the United States in connection with a $1.6 million loan.
“For over two years, the defendant deliberately deceived financial institutions to fraudulently obtain a $1.6 million government-backed loan,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As this case demonstrates, those who defraud American taxpayers and seek to undermine the integrity of our financial system will be held accountable for their criminal conduct.”
According to court documents, Tae Il Lee, 41, was the Managing Director of New World Group, a Richmond-based company engaged in the business of exporting American snacks and other food stuffs to international buyers (typically South Korean companies). In April 2016, Lee sought what eventually became a $1.6 million loan from First National Bank of Pennsylvania, relying on the “Working Capital Program” offered by the Export-Import Bank of the United States (EXIM Bank). Under the program, EXIM guaranteed to provide financial backing for the loan in the event that New World Group defaulted.
Over the next two years, Lee regularly provided First National Bank, and the bank’s auditing firm, with financial documents that purported to show New World Group’s accounts receivable, banking statements, and financial statements. These documents reflected that New World Group was a growing, thriving export company, grossing more than $6 million in export sales in 2017 and another $6.3 million in just the first few months of 2018.
Those financial documents, however, were false. Specifically, Lee had created fictitious accounts receivable and financial statements, and doctored New World Group’s actual bank statements to show non-existent, high-dollar transactions that never took place. During the course of his fraud scheme, Lee also created a fictitious intermediary—a purported employee of New World Group—in order to account for delays in Lee’s communications with First National Bank.
In the spring of 2018, First National Bank issued a demand letter for the $1.6 million loan to New World Group. New World Group never completed any payments to First National Bank, which requested that EXIM cover the defaulted loan. EXIM did so, absorbing the $1.6 million loss.
Lee pleaded guilty to committing wire fraud and making false statements to a federally insured bank.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Jennifer Fain, Acting Inspector General for the Export-Import Bank of the United States, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorneys Thomas A. Garnett and Kaitlin G. Cooke prosecuted the case.
18:1014 AND ALL IN ACCORDANCE WITH 18:982(a)(2): FALSE STATEMENT TO FEDERALLY INSURED BANK; FORFEITURE
(1)
18:1343 AND ALL IN ACCORDANCE WITH 18:982(a)(2): WIRE FRAUD; FORFEITURE
(2)
Outcome: SENTENCE: IMPRISONMENT THIRTY-FOUR (34) MONTHS, CONCURRENT; SUPRVISED RELEASE FIVE (5) YEARS; FINE NOT IMPOSED, SPECIAL ASSESSMENT, $100.00
Plaintiff's Experts:
Defendant's Experts:
Comments: