A Newport couple has been charged by the US government with swindling a consortium of eight banks including Bank of America, of a $130 million revolving line of credit for their company, according to a release by the FBI.
61-year-old Thomas Chia Fu, and his 48-year-old wife Cheri L. Shyu, own Galleria USA Inc. an Anaheim, California based company that imports home decor items made in China.
They are accused of borrowing by exaggerating the company’s in-transit inventory and doctoring invoices to support the exaggerated numbers. The Fus are believed to have filed false reports from June 2008 to March 2009 and the fraud continue till August that year, according to Bloomberg.
The couple were indicted on nine counts of bank fraud by a federal grand jury and each charge carries a maximum 30-year sentence in federal prison.
The case was investigated by the office of the special inspector general for TARP, the FBI, and the Secret Service and the Fus were expected to be arraigned in the United States District Court yesterday.