US Files Counterclaims Against Saehan Bank In SBA Loan Fraud Case

The federal government has filed False Claims Act counterclaims against Saehan Bank and crossclaims against Steve Yong Kim and Young Soon Kim in the Northern District of Oklahoma. The United States also filed a counterclaim and crossclaim under the Financial Institutions Reform, Recovery and Enforcement Act. The government alleges that Saehan Bank and the Kims made false statements in connection with the application process for a Small Business Administration (“SBA”) loan. 

The allegations relate to the SBA’s 504 loan program, which offers small businesses long term, fixed rate financing to acquire major fixed assets, such as buildings or machinery, for expansion or modernization. Before the 504 loan closing, the SBA requires certain certifications regarding the borrower’s financial condition and ability to repay the loan. The government alleges that Saehan Bank and the Kims falsely certified that the Kims had experienced no adverse change in their financial circumstances, even though the bank and the Kims knew that the Kims were facing serious financial difficulties. The SBA approved the Kims’ $1.7 million 504 loan, but the government alleges that the Kims never made any payments on the loan.