Two brothers who ran a business that shipped scrap metal to the Far East were charged by federal authorities of bilking more than $50 million from seven banks.
Raymond Yiu, and his brother Kelvin Yiu each were charged with two counts of bank fraud and one count of conspiracy to defraud the United States.
The charges were unsealed by the U.S. Attorney General’s Office for the Southern District of New York March 16th. The indictments were sealed the previous week. Both men were officers of Ever-Glitter Co.
According to news reports, both men face up to 30 years in prison if convicted of bank fraud and an additional five years for conspiracy, as well as a fine of the greater of $250, 000 or twice their gross gain or loss.
According to the indictment, the Yius received more than $50 million in financing for their business between 1996 and 2002 through loans and credit lines extended by the General Bank of Los Angeles, the Bank of China, Shanghai Commercial Bank, FleetBoston Financial Corp., Chinatrust Bank, Banco Popular and the Bank of Communications.
The brothers told their bankers in July 2002 that Ever-Glitter was no longer able to make its loan payments, the indictment charges. They told their bankers in August 2002 that sales at their business decreased dramatically in 1997 and they had used credit and borrowed funds to make loan payments, as well as submitted false financial information to the banks, according to the indictment.
A pretrial conference on the cast is slated to be held April 15th.