Bank Insider in Texas Allegedly Uses Fake Invoices, Income Tax Returns and Bank Statements To Obtain Loans in a Fraudulent Scheme: DOJ

The U.S. Attorney’s Office for the Southern District of Texas has arrested a bank insider over allegations that he masterminded a large-scale fraud scheme.

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Acting U.S. Attorney John G.E. Marck accuses Houston resident and local banker Siupo Ernest Mo of conspiring with others to drain millions of dollars from federally insured financial institutions.

Mo allegedly abused his position as a loan officer to facilitate fraudulent loan applications containing false information, such as fake equipment invoices, made-up tax returns and falsified financial and bank documents. He allegedly recruited others to prepare fraudulent tax returns, which were subsequently used to inflate income and support applications in an effort to dupe lenders into approving millions of dollars in loans.

The Department of Justice (DOJ) highlights that while Mo is accused of criminal conduct, he is presumed innocent unless convicted through the due process of law.

The Texas Financial Crimes Intelligence Center teamed up with other government agencies, including the Federal Housing Finance Agency – Office of Inspector General, IRS Criminal Investigation, FBI and Federal Deposit Insurance Corporation – OIG, to investigate the bank fraud scheme.

The case against Mo comes as the DOJ establishes the National Fraud Enforcement Division, which aims to “zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars.”

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