United Commercial Bank, the first recipient of bailout funds from the Troubled Asset Release Program to declare bankruptcy, now also becomes the first recipient whose executives will face criminal charges in connection with that program.  United Commercial Bank’s CEO Thomas Wu and vice presidents Ebrahim Shabudin and Thomas Yu have all been charged by the SEC for allegedly falsifying records and lying to auditors in order to obscure the bank’s true condition before receiving $298 million in bailout funds.

United Commercial Bank declared bankruptcy in November 2009, leaving taxpayers out the cost of the loan, above and beyond the potential billions of dollars in losses from the Federal Deposit Insurance Corp.  Thirteen former employees were fined a total of more than $1.7 million.

Read the entire article, “Fraud charges filed against SF bank execs who accepted millions in bailout”