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OC couple arrested for $130 million credit scam

March 10, 2011 12:00:00 AM PST
A Newport Coast couple was arrested Thursday morning after being indicted on federal charges of defrauding eight banks out of approximately $130 million.

Thomas Chia Fu, 61, and his wife, 48-year-old Cheri Fu, were arrested without incident at their residence by federal authorities. They face up to 30 years in prison if convicted.

The couple own an Anaheim company called Galleria USA, Inc., which imported home decor items manufactured in China. They obtained a $130 million revolving line of credit for Galleria from a group of eight banks, including Bank of America.

Prosecutors claim the couple inflated their sales and inventory to obtain the credit, and faked documents to support the fraud.