Feds charge former execs of failed bank with fraud
SAN FRANCISCO (AP) — Two former executives of a failed San Francisco-based bank that received a $298 million government bailout have been charged with fraud.
A federal grand jury on Tuesday indicted Ebrahim Shabudin and Thomas Yu on charges that they falsified corporate books, lied to auditors and conspired to hide substantial loan losses at United Commercial Bank. The bank's failure cost the Federal Deposit Insurance Corp. $2.5 billion.
United Commercial filed for bankruptcy after receiving $298 million from the government's Troubled Asset Relief Program in November 2008.
Shabudin served as the bank's chief credit officer and chief operating officer until April 2009. Yu was manager of credit risk until June 2009.
Their lawyers did not immediately return calls seeking comment.