The U.S. Attorney’s Office arrested Edward Shin, the CEO of Noah Bank, for allegedly taking bribes in connection with the bank’s issuance of loans and causing the bank to issue loans to companies in which he had a secret interest.
The U.S. Attorney’s office complaint contends Noah Bank, based in Elkins Park, PA, made loans guaranteed by the Small Business Administration available to eligible businesses in the New York and New Jersey area. These loans required compliance with SBA regulations and procedures in order to be issued.
Specifically relevant to Shin’s case, bank officers were prohibited from receiving any payments related to the loans, and loans were barred from being extended to businesses in which a bank officer held an interest.
According to the U.S. Attorney’s office, Shin directly violated these rules.
Philly.com, reported Shin allegedly had been siphoning off of SBA loans, including a $950,000 loan to a company Shin owned a 50% stake in and which went into default, resulting in a loss of $611,500 loss for the U.S. Small Business Administration.
Noah Bank issued a statement contending it is neither a defendant nor a suspect in relation to any of the alleged charges. The bank will remain open to conduct business as usual. Its deposits are insured by the FDIC up to the maximum extent allowed.
Hyunjun An, Noah Bank’s Chief Financial Officer, has been named acting president of the bank.
Launched in 2004 and headquartered Noah Bank is a Pennsylvania-chartered bank that initially operated under the name “Royal Asian Bank, a Noah Bank” before changing its name to “Noah Bank” in 2011. Noah Bank provides banking products and services to businesses and consumers primarily in the Asian-American communities of Southeastern Pennsylvania, Northern New Jersey, Manhattan, New York and Flushing, New York.