A former executive who admitted defrauding a Pasadena bank out of $9 million faces up to 10 years in federal prison when he is sentenced today.
Chung Yu “Louis” Yeung, 39, of San Dimas pleaded guilty in March to one federal count of conspiracy to commit bank fraud and four counts of bank fraud.
The former vice president of Eastern Tools and Equipment in Ontario, which sold portable generators and other equipment, admitted defrauding East West Bank by inflating the amount of business done by the company so it could obtain a large loan.
Yeung and others set up about 20 shell companies with bogus business name statements, post office boxes, bank accounts and telephone numbers to give the appearance that the company was conducting a lot more business than it actually was.
Eastern Tools defaulted on the promissory note after East West discovered the fraud, causing more than $9 million in losses to the bank, Yeung admitted.
A second man, Guo Xiang “David” Fan, was also indicted last year but is thought to be hiding in China.
