Californian Sentenced for HELOC Scam

Allison Tussey —  October 4, 2012 — Leave a comment

David Han, 50, Tujunga, California, was sentenced to 37 months in federal prison for his participation in a home equity line of credit (HELOC) scheme which resulted in losses of more than $1 million.

The defendant was sentenced by United States District Judge Manuel L. Real, who also ordered the defendant to pay $1,065,000 in restitution.

Han pleaded guilty in May 2012 to four counts of bank fraud based on his submission of home equity loan applications to four different banks. The HELOC applications were all submitted under the alias “Young He Kim” and were all to be secured by the same property. Han submitted the HELOC applications in a “shotgun” approach in order to obtain approval and funding before any of the banks recorded liens on the property. In addition to concealing his true identity, Han made false representations on his loan applications about his employer, his employment status and his income.

Once the loans funded, Han directed the proceeds to be deposited into bank accounts that he had opened under the alias, and then he wrote checks to cash or purchased cashier checks to withdraw the funds. After accessing more than $700,000 in loan proceeds, Han sent checks that prosecutors allege were counterfeit ““ purportedly to be partial loan re-payments ““ to the banks, which then made additional funds available to Han. Han accessed over $300,000 of these funds before the banks realized that the checks were counterfeit.

The investigation was conducted by the Federal Bureau of Investigation.

Allison Tussey

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