LOS ANGELES – Sammy Sims, 61, of West Covina, was sentenced today to 36 months in federal prison for embezzling over $700,000 from his former employer, Eastern International Bank, located in Chinatown, Los Angeles. U.S. District Judge Maame Ewusi-Mensah Frimpong also ordered Sims to pay $306,849 in restitution.
Sims, who served as the bank’s Chief Financial Officer starting in September 2017, pleaded guilty on February 22 to one count of bank fraud. He admitted to misappropriating bank funds to cover personal expenses and benefit his wife. His scheme, which began in February 2018 and lasted until at least April 2021, involved various fraudulent activities.
From August 2018 to October 2020, Sims transferred $86,000 of bank funds to the U.S. Treasury and California Franchise Tax Board to pay personal income taxes, disguising these payments as bank-related expenses through false entries in the bank’s ledger. He also used $14,161 of bank funds to settle a personal debt, misrepresenting it as a payment for data processing software.
Additionally, from April 2019 to December 2020, Sims embezzled approximately $113,264 to pay personal credit card balances and used a bank credit card for personal expenses, including luxury dining and a trip to Las Vegas. He also exploited bank employees’ personal information to open life insurance policies with his wife’s brokerage, directing approximately $311,608 of bank funds towards these policies.
Sims attempted to cover his tracks by fabricating stories about potential data breaches and unauthorized disclosures. He resigned after being confronted about the fraudulent life insurance policies.
The FBI and the Federal Deposit Insurance Corporation Office of Inspector General conducted the investigation. Assistant U.S. Attorney Jason C. Pang, with assistance from Assistant U.S. Attorney James E. Dochterman, prosecuted the case.
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