A Houston man has pleaded guilty to laundering the proceeds of a massive $40 million fraud scheme, admitting to his role in falsifying loan applications and engaging in money laundering from 2016 to 2021.
Bun Khath, 43, acknowledged his participation in a scheme where fake documents, including equipment sales invoices, income tax returns, and financial statements, were used to falsify loan applications. As part of his plea agreement, Khath admitted to setting up and managing shell companies and bank accounts that received and laundered the funds. He then transferred the proceeds to accounts controlled by his co-conspirators.
Khath now faces up to 10 years in federal prison and could be fined as much as $250,000 or double the amount of the transaction. Sentencing is scheduled for April 29 before U.S. District Judge Keith Ellison. Prosecutors confirmed that Khath remains on bond until then.
