Federal court has closed the book on a long-running Houston loan scam, sentencing resident Bun Khath to 10 years in prison for laundering proceeds from a $40 million bank-loan fraud scheme. Khath pleaded guilty in 2025 and admitted running shell companies that helped move fraudulent loan money into accounts controlled by co-conspirators, in a scheme prosecutors say spanned several years and touched dozens of loan applications, according to the U.S. Attorney’s Office for the Southern District of Texas.
Sentence Announced
In a post on X on Feb. 20, the U.S. Attorney’s Office for the Southern District of Texas announced the sentence, saying Khath would serve 10 years in federal prison. The post marked a formal judgment in a case that prosecutors say was…..