![]() Chanterelle went to work at the bank with her sisters. Abacus Bank went into a liquidity crisis after its clientele withdrew $44 million. Abacus Crisis in 2003 (02:55)Ĭarol Lim embezzled over a million dollars from the Canal Street branch. Wong routinely denied potential loans on the basis of inconsistent financial information. The defense showed that officers attempted to hide misconduct from the underwriters. The seating chart of the Abacus loan department proved that fraud was centered around Tam's desk. Vance asserted the investigation was not racially motivated. Thomas was not offered the same deal as other financial officers. Fraud Scheme (03:34)Īlmost every major financial company and big bank issued large numbers of home loans and disguised them as high-rated securities to sell to investors. ![]() On the fifth day of the trial, Ken Yu testified as the prosecution's star witness. Charges Against Abacus (05:21)Ĭharges included falsifying business records, residential mortgage fraud, grand larceny, and conspiracy. The family shared their feelings about their attorney's argument. The prosecuting attorney alleged that Abacus routinely falsified and faked mortgage documents, intentionally deceiving the Federal National Mortgage Association. Abacus officers decided to plead not guilty and fight the allegations. If vendors complained about unfair tickets from the police, they feared retribution. Community Outrage (03:31)įamily associations welcomed Chinese immigrants, providing a sense of community. Raymond Tam and Wong had already been arraigned and posted bond. Investigators gave the media an opportunity to record ranking officers at Abacus Bank in handcuffs. Yiu Wah Wong refused to be interviewed about the fraud committed at Abacus. The compliance officer created binders for the staff. Originally, the DA's office focused solely on the employee accused of theft. Jill Sung fired the loan officer, referred the case to the compliance officer, and notified Freddie Mae the borrower filed a complaint at the local police precinct. Ken Yu ran a money-laundering operation through the bank. Hwei Lin Sung reflects on her daughters working in Chinatown Thomas wanted to make a difference in the community. Customers began depositing funds and obtaining home loans. Immigrant Banking System (03:03)Ībacus contained over 8,000 security deposit boxes. Sung founded Abacus because no banks in the region would loan to Chinese Americans. The Chinese Consolidated Benevolent Association sponsored a school. Sung emigrated to the United States at the age of 16, went to law school, and moved to Chinatown. Mortgages were based on false documentation. Cyrus Vance announced the indictment of Abacus in 2012. George Bailey's character in "It's a Wonderful Life" inspired Thomas Sung to open a bank for immigrants. On September 7, New America NYC presented a screening of Abacus: Small Enough to Jail , followed by a conversation with the film’s director, the Sung family, and legal experts on the unequal application of corporate justice in America and what - if anything - is being done to correct it.Abacus: Small Enough to Jail: Introduction (03:01) FREE PREVIEW The small, fiscally conservative bank weathered the 2008 worldwide economic meltdown, but at the same time large, global banking institutions were deemed “too-big-to-fail” and given bailouts, Abacus saw its employees marched out of the bank in chains for the evening news. Thomas Sung, a prominent lawyer and real estate developer, opened the Abacus bank in 1984 to provide the small housing and business loans that Chinatown’s residents and business owners were routinely denied. Part legal thriller, part underdog saga, Abacus: Small Enough to Jail, a film from director Steve James ( Hoop Dreams, Life, Itself), tells the incredible tale of the Sung family and their five-year, ten-million-dollar legal battle to defend themselves and their bank’s legacy. to face criminal charges in the wake of the 2008 financial crisis. The only United States bank indicted for mortgage fraud related to the 2008 financial crisis is the one you’ve never heard of.Ĭharged with securities fraud, mortgage fraud, and conspiracy, Chinatown’s Abacus Federal Savings Bank - the country's 2,531st largest bank and a cornerstone of the Chinese immigrant community - became the only bank in the U.S.
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