March 30, 2016
A California man who was a vice president of a wholesale equipment company pleaded to fraud charges today in connection with a bank fraud scheme that resulted in more than $9 million in losses to a California bank.
Chung Yu Yeung, aka Louis Yeung, 39, of San Dimas, California, pleaded guilty before U.S. District Judge Christina A. Snyder of the Central District of California to one count of conspiracy to commit bank fraud and four counts of bank fraud. Sentencing was set for June 20, 2016, before Judge Snyder.
According to admissions made in connection with his guilty plea, from 2007 to 2012, Yeung was the vice president of Eastern Tools and Equipment Inc. (Eastern Tools), a wholesale equipment company based in Ontario, California, that sold portable generators to retailers across the country. Yeung admitted that beginning in 2007, he and his co-conspirators defrauded East West Bank, based in Pasadena, California, in connection with a line of credit for Eastern Tools by making and causing to be made material misrepresentations to the bank about Eastern Tools’ accounts receivable and its financial statements. The conspirators created numerous shell corporations to act as purported suppliers and retailers doing business with Eastern Tools, when, in reality, these shell corporations were entirely under the control of Yeung and existed for the sole purpose of creating the illusion of such business, he admitted. Yeung admitted that the fictitious companies allowed him and other conspirators to falsely inflate Eastern Tools’ accounts receivable and financial statements in representations to East West Bank.