By Matthew Russell Lee, Video, Alamy photos
SDNY COURTHOUSE, Feb 13 – Noah Bank's Edward Shin was on arrested for defrauding the U.S. Small Business Administration on May 29 and would, it was said, be presented later on May 29 before Magistrate Judge James L. Cott in the U.S. District Court for the Southern District of New York.
Inner City Press after reporting the arrest went the SDNY Magistrate's Courtroom 5A and was told Shin would be presented at some undefined later hours. But with the door to 5A locked at 4:30 pm, Inner City Press was told Shin "has not been presented, there are no terms. Tomorrow is more likely." And later, as Inner City Press waited in front of the locked door, staff emerged with a more specific prediction: 2 pm May 30.
In fact it happened slightly before then. Here are the terms of Shin's release: "Surrender travel documents and no new applications; travel restricted to SD/EDNY, DNJ, EDPA. $1 Million bond secured by $25,000 cash and signed by two co-signors (condition to be met within a week)." And, interestingly, "Alcohol testing / treatment." Inner City Press has been contacted by those covering Shin well before this, who said that Shin "threatened to kill a borrower [and] was sued for reneging on a board control deal."
Now on February 12 leading up to a trial scheduled for August 16, Judge Woods rejected many of Shin's motions in limine - evidence will come in. (One motion was denied as moot, excluding six loans, which was a win for hte defense). Inner City Press will cover the trial. There's talk of a Korean language interpreter.
From the first statement: "the United States Attorney for the Southern District of New York, announced today the arrest of EDWARD SHIN, the CEO of a Pennsylvania-based bank (the “Bank”), for taking bribes in connection with the Bank’s issuance of loans that were guaranteed by the United States Small Business Administration (“SBA”). SHIN was arrested pursuant to a criminal complaint charging him with taking bribes by siphoning off a portion of commissions on SBA-guaranteed loans and causing the Bank to issue SBA-guaranteed loans to companies in which SHIN had a secret interest."
The bank is Noah Bank, and Shin has previously tried to sue the media for reporting on his misdeeds. And now?
More: " SHIN secretly solicited and received bribe payments in connection with SBA-guaranteed loans issued by the Bank and caused the Bank to extend SBA-guaranteed loans to companies in which SHIN had secret ownership interests. Specifically, when the Bank issued a business loan involving a certain broker (the “Broker”), SHIN secretly arranged to receive a portion of the Broker’s fee. On other occasions, when the Bank issued a business loan that did not involve the use of an actual broker, SHIN arranged to have the Broker inserted unnecessarily into the transaction solely to generate a broker fee that could be shared with SHIN; in fact, the Broker did no actual work to earn a commission on those transactions, but split the “broker’s fee” with SHIN as an illegal kickback.
SHIN also arranged for the Bank to issue SBA-guaranteed loans to businesses in which he secretly retained an ownership interest, in violation of SBA regulations and procedures. For example, in or about December 2010, the Bank issued an SBA-guaranteed loan for approximately $950,000 to a business in New York, New York. Although documents submitted to the Bank for purposes of securing the loan did not mention SHIN’s ownership interest, the business was secretly operated as a 50-50 partnership between SHIN and the Broker. After the loan was issued in or about October 2014, this loan went into default status, ultimately resulting in a loss to the SBA of approximately $611,491."
The case is US v. Shin, 19-cr-552 (Woods).
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