News and Press Releases

Dublin Man Sentenced To Twenty One Months Imprisonment For Bank Fraud

FOR IMMEDIATE RELEASE
March 14, 2014

OAKLAND – Saleem M. Khan was sentenced yesterday to twenty one months in prison and ordered to pay a $60,000 fine for bank fraud and making false statements to a financial institution, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.

Khan pleaded guilty on July 25, 2013, to submitting false documents to a financial institution in order to obtain a settlement of his home equity line of credit (“HELOC”). Specifically, Khan admitted that he took out a $344,000 HELOC on his home in approximately September 2005. That HELOC was owned by E-Trade Bank, which retained PNC Bank to service the loan. By 2010, Khan had stopped making payments on the HELOC. In January 2011, he provided a so-called “hardship package” to PNC Bank to demonstrate his inability to pay the loan. That hardship package contained false statements regarding Khan’s employment history, income, and assets, and included a forged pay stub that underreported his monthly income by approximately $2000. Moreover, Khan failed to disclose to PNC Bank the significant stock options trading gains of approximately $800,000 that that he had made in the previous year. Based on Khan’s misrepresentations, PNC Bank and E-Trade Bank ultimately agreed to settle the outstanding $344,000 HELOC balance for only $45,000, and thereafter the banks took action to re-convey to Khan the lien that they held on Khan’s property.

Khan, 49, of Dublin, was indicted by a federal grand jury on December 6, 2012. He was charged with one count of bank fraud and one count of making false statements to a financial institution.

The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, United States District Court Judge, following a guilty plea on one count in violation of Title 18, United States Code, Section 1344, and one count in violation of Title 18, United States Code, Section 1014. Judge Gonzalez Rogers also sentenced the defendant to a three-year period of supervised release and a $60,000 fine. The Court set a further hearing for May 29, 2014, for determination of a restitution amount to be paid to the bank victim in this case. The defendant will begin serving the sentence on June 23, 2014.

Kyle F. Waldinger is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of an investigation by the FBI.

(Khan indictment )

 

 

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