Noah Bank CEO Shin on Trial Cross Examined About Personal Loans to Deli Owners

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Noah

Bank CEO Shin on Trial Cross Examined
About Personal Loans to Deli Owners


By Matthew
Russell Lee, Video, Alamy

photos

SDNY COURTHOUSE,
May 19 – Noah Bank’s Edward
Shin was on arrested for
defrauding the U.S. Small
Business Administration on May
29, 2019 and would, it was
said, be presented later on
May 29 before
Magistrate

Judge James L.
Cott in the
U.S. District
Court for the
Southern
District of
New York.

 
Inner
City Press
after reporting
the arrest
went the SDNY
Magistrate’s Courtroom

5A and was
told Shin
would be
presented at
some undefined
later hours. But
with the
door

to 5A locked
at 4:30 pm,
Inner City
Press was told
Shin “has not
been
presented,
there are no
terms. 
Tomorrow is
more likely.” And
later, as
Inner City
Press waited
in front of
the locked
door, staff
emerged with a
more specific
prediction: 2
pm May 30.

 
In fact it
happened
slightly before
then. Here are
the terms of Shin’s
release:
“Surrender
travel
documents and
no new
applications; travel

restricted to
SD/EDNY, DNJ,
EDPA.
$1 Million
bond secured
by $25,000
cash and
signed by two
co-signors
(condition to
be met within
a week).” And,
interestingly,
Alcohol
testing /
treatment.”
Inner City
Press has been
contacted
by those
covering Shin
well before
this, who said
that Shin

“threatened to
kill a
borrower [and]
was
sued for
reneging on a
board control
deal.


Then
on February
12, 2021
leading up to
a trial
scheduled for
August 16,
Judge Woods rejected
many of Shin’s
motions in limine
– evidence
will come in. (One
motion was
denied as moot,
excluding six
loans, which
was a win for
the defense).

 
Jump cut to
April 25,
2022. The case
was
re-assigned to
Judge John P.
Cronan, who has set trial
for April 26.
On the eve of it
the US put in
SBA
documents
about loans
to produce
companies,
offering to
redact
some.

On
April 27,
there were
opening
statements.
While numerous
AUSAs in
the gallery
but apparently no
media other
than Inner
City Press,
Shin’s

lead counsel Paul Boyton Brickfield
showed a half
dozen PDF
slides,
emphasizing
that the US‘s
cooperating
witness James
Kim is a
“Crooked Deli
Owner.” Juror
6 raised his
hand to say
that his
screen was not
working. Then the
witnesses
kicked off.

On April
28, former Noah
Bank executive
offer
Marie Lee was
questioned by
Shin’s
lawyer about
her Regulation
O
filing where
she said there
were no
“covert
transactions.”
Now she
says there
were. So was
she lying
then, or lying
now? She
demanded a
year‘s
salary as
severance,
then called it
a consulting
agreement for
14 months. The AUSA
objected to
hearsay. But Shin’s
text to her may
come in if a
foundation is
laid.

On May
2, she was
still on the
stand, now
trying to explain
when a referral fee
could or
would be paid,
and when not.
She was show a
Form 159 to
the SBA that
she had
signed…

On May
3, the next
witness was
questioned
with Korean
interpreter
about a broker
fee email from
James Kim to
Ed Shin, $37,500
to SBA
Eastern Realty in
Koreatown, and
Windsor LLC.
The proof was
accumulating
and in the
hall by the
elevators at
day’s end,
Shin looked
worried.

On May
4, Kim was
still on the stand,
now testifying
about an email
from Shin
about using Wells
Fargo and Shinhan
Bank for
projects “Cafe
45” and 32
Madison with
Chin Yi, who Shin
described as
fishy.

On May
5 Kim was
getting cross
examined about
his
visits to casinos in
Queens, New
York and in
Atlantic City.
He said,
though the
Korean
interpreted, I
am not
passionate
about winning.
Shin’s lawyer
shot back, So
you go to lose?
He plays blackjack
and roulette.
Now it’s
Shin who’s
gambling.

On May
9 a witness
who worked at stores
owned by James
Kim described
being
told by his
aunt Sophie Han

to

put thousand
dollar bundles
of cash in a
separate safe for Kim
to pick up.
First it was
Madison Kim
Farms, than
1797 Empire Corporation.

On May
16, Shin’s
lawyer filed a
motion to
quash the
government’s
subpoena to
Shin for all
this tax
returns from
2009 through
2014 – and all
casino
records. The
argument is
that producing
this information

would chill
Mr. Shin’s
right to
testify on his
own behalf. 

On May
17, Shin did in fact
take the
stand. On
direct,
speaking in
Korean, he described

growing up in
LA and New Jersey,
then working
for Chase
Bank. He put
in a bid with
others for Royal
Asian Bank in
2009, renaming
it Noah
(because, he
said, many of
the Korean
store owners
go to big
Christian
churches).

On May
18, Shin doggedly
through a
different
interpreter
described
loans to Aspen
Market on
Broadway
(which Shin
said was owned
by a “Turkish business”
who had a Korean
fish salesman
as a tenant)
and to Li 77
Corp in Hunts
Point. The effect on
the jury is
not yet known.

 Judge
Cronan told
jurors to
expect closing
arguments in
the week
beginning May
23.

On May
19 without the
jury present
the parties argued
the jury
charge, line
by line. The defenses wanted
the word
“merely” out of page
22; the AUSA
argued that
the jury does
NOT need to be
unanimous on
which wire, or
even which
kind of wire,
to convict of
conspiracy.

On May
23, during
cross examination

of Shin,
the AUSA
asked Shin if
he had made
personal loans to First
Avenue
Lees, 32
Madison Farm
and 1795 Empire.
Shin dodged
then said,
loans to the
owners, probably for use in
the
businesses. 

Inner

City Press
will be
continuing to
cover the
trial.

  From the
first statement: “the United
States Attorney for the
Southern District of New York,
announced today the arrest of
EDWARD SHIN, the CEO of a
Pennsylvania-based bank (the
“Bank”), for taking bribes in
connection with the Bank’s
issuance of loans that were
guaranteed by the United
States Small Business
Administration (“SBA”). 
SHIN was arrested pursuant to
a criminal complaint charging
him with taking bribes by
siphoning off a portion of
commissions on SBA-guaranteed
loans and causing the Bank to
issue SBA-guaranteed loans to
companies in which SHIN had a
secret interest.”

  The bank
is Noah Bank, and Shin has
previously tried to sue the
media for reporting on his
misdeeds. And now?

  More:
“SHIN secretly solicited and
received bribe payments in
connection with SBA-guaranteed
loans issued by the Bank and
caused the Bank to extend
SBA-guaranteed loans to
companies in which SHIN had
secret ownership
interests.  Specifically,
when the Bank issued a
business loan involving a
certain broker (the “Broker”),
SHIN secretly arranged to
receive a portion of the
Broker’s fee.  On other
occasions, when the Bank
issued a business loan that
did not involve the use of an
actual broker, SHIN arranged
to have the Broker inserted
unnecessarily into the
transaction solely to generate
a broker fee that could be
shared with SHIN; in fact, the
Broker did no actual work to
earn a commission on those
transactions, but split the
“broker’s fee” with SHIN as an
illegal
kickback.                

SHIN also
arranged for the Bank to issue
SBA-guaranteed loans to
businesses in which he
secretly retained an ownership
interest, in violation of SBA
regulations and
procedures.  For example,
in or about December 2010, the
Bank issued an SBA-guaranteed
loan for approximately
$950,000 to a business in New
York, New York.  Although
documents submitted to the
Bank for purposes of securing
the loan did not mention
SHIN’s ownership interest, the
business was secretly operated
as a 50-50 partnership between
SHIN and the Broker. 
After the loan was issued in
or about October 2014, this
loan went into default status,
ultimately resulting in a loss
to the SBA of approximately
$611,491.”

The case is US v.
Shin, 19-cr-552 (Cronan).

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