HOUSTON, Texas — A 44-year-old man has been sentenced to a decade in federal prison for laundering proceeds from a large-scale bank fraud scheme, according to U.S. Attorney Nicholas J. Ganjei.
Bun Khath, who pleaded guilty on February 11, 2025, was ordered by U.S. District Judge Keith Ellison to serve 120 months in federal prison, followed by three years of supervised release. During the hearing, the court was presented with evidence that the bank fraud scheme involved over $60 million in loans and that Khath directed numerous participants, including bankers, co-defendants, tax preparers, and borrowers. The court also heard evidence related to alleged Medicare fraud committed by Khath while on bond. The offense was described as a heinous crime by the court.
As part of his plea, Khath admitted to opening and maintaining shell companies and bank accounts to collect proceeds from the scheme. He also acknowledged laundering the funds by wiring them to accounts controlled by co-conspirators. The bank fraud was executed by submitting loan applications with false and fraudulent information and supporting documents, including fabricated equipment sales invoices, income tax returns, and financial and bank statements…