The United States 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.
According to philly.com, 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.
Philly.com reports he was charged with single counts of conspiracy to commit bank bribery, bank bribery, theft of funds by a bank officer, and conspiracy to commit wire fraud.
Noah Bank itself is neither a defendant nor a suspect in relation to any of the alleged charges. The safety and soundness of the bank is not at issue, and as such, it will remain open to conduct business as usual. The Bank’s deposits are insured by the FDIC up to the maximum extent allowed.
In accordance with the Bank’s succession plan, Hyunjun An, Noah Bank’s Chief Financial Officer, has been named acting president of the bank. The bank does not expect the matters to have any material impact to its financial statements and the bank is cooperating fully in the investigation.
Launched in 2004 and headquartered in Elkins Park, PA, 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.