A 48-year-old Chino Hills man is facing up to 30 years in prison after pleading guilty to taking part in a years-long scheme with two women on fraudulent residential-mortgage loans through a Michigan bank’s low-documentation loan program.
Hao Liang Hu pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud. He is scheduled to be sentenced June 27, 2022, according to the U.S. Department of Justice.
Yi Hou Han, 39, of San Francisco, and Amy Lu, 33, of Brea, also entered guilty pleas for their roles in the scheme. Ms. Han faces a 30-year prison sentence when she is sentenced on Aug. 18, 2021. Ms. Lu is facing five years in prison. She will be sentenced June 28, 2021.
Mr. Hu originated at least 825 Advantage Loan Program, earning $2.5 million in commissions.
Investigators said Mr. Hu served as a residential-loan officer and, between 2011 and 2019, falsified borrowers’ income and debt-to-income ratios, job titles, employment histories and documents.
“As part of the scheme,” investigators said, “they instructed borrowers to fabricate deposit histories and to transfer funds to third parties, who would then transfer the funds back to the borrowers as gifts in order to conceal the true source of the funds and to promote the underlying fraud scheme.”
The three suspects also “knowingly facilitated the approval of loans to borrowers involved in money laundering and tax evasion,” investigators said.
They represented almost 2,500 loans and more than $876 million in credit extend through a financial institution.
Ms. Han earned $3.3 million in commissions and Ms. Lu earned $990,000 in commissions, investigators said.
The case was investigated by several agencies, including the FBI.