A Houston man has admitted to laundering proceeds from a significant bank fraud scheme, as announced by U.S. Attorney Nicholas J. Ganjei. Bun Khath, 43, confessed to his involvement in a conspiracy with others between 2016 and 2021. The scheme involved fraudulent loans amounting to at least $40 million.
Khath's plea included acknowledgment of setting up shell companies and bank accounts to gather money from the scheme. He further admitted to laundering these proceeds by transferring them to accounts managed by co-conspirators.
The fraud was executed through loan applications filled with false information and documents such as fake equipment sales invoices, income tax returns, financial statements, and bank records.
Sentencing is scheduled for April 29 by U.S. District Judge Keith Ellison. Khath could face up to ten years in federal prison and a fine of $250,000 or twice the transaction amount involved. He remains on bond until the hearing.
Another individual charged in connection with this case, Hugo Villanueva, 70, is considered a fugitive with an outstanding arrest warrant. The FBI requests anyone with information on his whereabouts to contact them at 713-693-5000.
The investigation was conducted by the Federal Housing Finance Agency-Office of Inspector General (OIG), IRS-Criminal Investigation, FBI, and Federal Deposit Insurance Corporation-OIG. Assistant U.S. Attorney Belinda Beek is handling the prosecution.