A Houston man pleaded guilty to laundering proceeds from a massive $40 million fraud scheme, admitting his involvement in falsifying loan applications and money laundering from 2016 to 2021.
43-year-old Bun Khath admitted to participating in a scheme where the group falsified loan applications with fake documents, including equipment sales invoices, income tax returns, and financial statements.
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As part of the plea, prosecutors said Khath acknowledged that he opened and managed shell companies and bank accounts to receive as well as launder the funds. Court records say he then wired those proceeds to accounts his co-conspirators controlled.
The 43-year-old now faces up to 10 years in federal prison and a potential fine of up to $250,000 or twice the amount involved in the transaction when sentenced on April 29 by U.S. District Judge Keith Ellison. Prosecutors said Khath has been allowed to remain on bond pending the sentencing.
Another Houston resident, 70-year-old Hugo Villanueva, who is also linked to this case, remains at large, with a warrant issued for his arrest. The FBI is seeking the public’s assistance in locating him. Anyone with information about Villanueva’s whereabouts is urged to contact the FBI at 713-693-5000.
The investigation was conducted by the Federal Housing Finance Agency-Office of Inspector General (OIG), IRS-Criminal Investigation, FBI, and the Federal Deposit Insurance Corporation-OIG. Assistant U.S. Attorney Belinda Beek is prosecuting the case.