The Abacus clients whose aborted closing sparked Ken Yu’s termination lost their deposit on the property when the loan fell through. They went to the police and

The Abacus clients whose aborted closing sparked Ken Yu’s termination lost their deposit on the property when the loan fell through. They went to the police and filed a complaint, mentioning that Yu had falsified their mortgage application. The police referred the matter to the DA. Besides the unfortunate but I suppose inevitable detail that the applicants lost their deposit to the property owner, nothing new or unacknowledged by the bank. its loans wouldn’t have met Fannie Mae’s income requirements, and the bank depended on Fannie’s money for a significant chunk of its profit The jury, AKA the finders of fact, disagreed with the allegation at the beginning of that snippet, the latter is just gilding the ragweed. ADDED: as FireBeyond notes, ~30K/year isn't much profit. Per this http://www.ibanknet.com/scripts/callreports/getbank.aspx?ibnid=usa_762773 http://www.ibanknet.com/scripts/callreports/getbank.aspx?ibn... its most current annual net income is 430,000, but that's certainly weighed down by the 10 million the NYT article reports they had to spend defending themselves. So ~30K/year is, as our intuition suspects, minuscule, certainly not "a significant chunk of its profit". In April 2011, Yu pled guilty to grand larceny, fraud, and falsifying business records, and is cooperating with the investigation Entirely congruent with the claimed actions and position of the bank, and mentioned in less detail in the NYT article. The accused employees include Yiu Wah Wong, the bank’s chief credit officer, who reported directly to Jill Sung; and Wai Hung “Raymond” Tam, the loan origination supervisor, who trained the bank’s loan officers and processors Well, yeah, and mentioned to some degree in the NYT article, but, again, the finders of fact disagreed with the prosecutor's allegations.