2 Filipinos among 8 charged in $80-M bank fraud in US

Eight people, including two Filipinos based in Manila, have been charged for conspiring to commit an $80-million fraud against the Export-Import Bank of the United States (Ex-Im Bank), federal prosecutors said.

The defendants were identified as Daniel Curran, 52; Edward Chua, 55; David Villongo, 51; Jaime Galvez, 51; Christina Song, 49; and Robert Delgado, 46, all residing in California.

Two other accused, Marilyn Ong, 51 and her nephew Ildefonso Ong, 43, are based in the Philippines.

They were said to be involved in the fraudulent sale and shipment of US exports to the Philippines.

“We will not tolerate fraudulent use of Ex-Im Bank financing,” US Ex-Im Bank chairman and president James Lambright said in a statement.

“With the help of the Justice Department, we will continue to pursue anyone attempting to rip off the taxpayer,” he said.

According to prosecutors, a loan broker in the Philippines assisted borrowers in obtaining loan guarantees or insurance policies from the Ex-Im Bank as part of loan agreements with lending banks.

The loan broker recruited US exporters who were supposed to purchase US goods and ship them to the Philippines. The exporters prepared false shipping documents and submitted them to banks, without really purchasing or shipping goods.

The exporters then secured and misappropriated the loan proceeds.

Five of the accused – namely Curran, Chua, Galvez, Song and Delgado – pleaded guilty to charges including conspiracy to defraud the US and mail fraud.

All US citizens, the five have agreed to serve time of up to 40 years in prison and to cash or property forfeiture.

The two Ongs, meanwhile, were charged with one count of conspiracy to defraud the US, four counts of submitting false statements to Ex-Im Bank, four counts of mail fraud and nine counts of money laundering.