Ex-UCB Execs Deny Fraud Over Loan Losses

Law360, New York (October 20, 2011, 5:05 PM EDT) -- Former United Commercial Bank executives Thomas Yu and Ebrahim Shabudin pled not guilty on Thursday to charges they engaged in securities fraud to conceal $65 million of the bank's loan losses, according to the U.S. Department of Justice.

Prosecutors accused Shabudin and Yu, who served as UCB's COO and senior vice-president, respectively, of lying to investors by concealing losses on loans and other assets from auditors. Their indictment was unsealed Oct. 11 in California federal court.

The men are accused of securities fraud, conspiracy to commit...
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