Lawyer Sent to Prison for Down Payment Fraud Scheme

Allison Tussey —  February 26, 2014 — Leave a comment

Jerry Goh, 51, Allen, Texas, 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 by U.S. District Judge David C. Godbey.

The defendant, 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.

U.S. Attorney Sarah R. Saldaña of the Northern District of Texas announced the sentence.

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.

Allison Tussey

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