U.S. Markets close in 3 hrs 32 mins

Va. man pleads guilty in $100M business loan fraud

BALTIMORE (AP) -- A Virginia man has pleaded guilty in a scheme to get fraudulent loans guaranteed by the Small Business Administration. Prosecutors said the scheme resulted in more than $100 million.

Forty-three-year-old Joon Park of Falls Church entered the guilty plea Tuesday in U.S. District Court in Baltimore. He faces a maximum penalty of 30 years in prison at sentencing May 28 and will be required to pay a judgment of more than $91 million.

According to his plea agreement, Park and others operated Jade Capital, a loan brokerage company. Prosecutors say Park submitted SBA loan applications to loan originators and underwriters on behalf of their clients that contained fraudulent documents.

Park then converted loan proceeds for his personal use.