This story appeared in Bank Digest.
Ebrahim Shabudin, the former chief operating officer and chief credit officer at United Commercial Bank in California, has been sentenced to eight years and one month in federal prison for his role in a securities fraud scheme and other corporate fraud offenses stemming from the failure of UCB, according to a SIGTARP release. SIGTARP said that the Troubled Asset Relief Program had provided approximately $298 million in federal funds to UCB during the financial crisis and that dividends on the TARP loan grew to over $3 million before the bank failed, bringing the total loss to taxpayers to over $300 million.
Shabudin was charged with conspiring with others within the bank to falsify key bank records as part of a scheme to conceal millions of dollars in losses and falsely inflate the bank's financial statements, according to the release. On March 25, 2015, a jury found Shabudin guilty of seven crimes related to the scheme.