Elkins Park, Pa.-based Noah Bank CEO Edward Shin was arrested on bribery charges in connection with the bank's issuance of U.S. Small Business Administration-guaranteed loans.
Shin allegedly exploited his position to have Noah Bank issue SBA loans to entities he secretly had a financial interest in. He is also accused of taking kickbacks on the issued loans. Specifically, the complaint alleged that when the bank issued a loan involving a certain broker, Shin took a portion of the broker's fee.
In cases when a broker was not involved in the loan, Shin allegedly put the broker in the transaction just for the sake of getting the fee, even if the broker did not do any legitimate work on the loan process.
The complaint also cited a case involving a $950,000 loan made by Noah Bank in 2010 to a business in New York, saying that the business was secretly operated by Shin and the broker. The loan went into default status later in 2014, resulting in a loss of about $611,491 to the SBA.