The case against Richard Po-Chun Wong, 56, of Covina, and William Chan Lim, 55, of Rowland Heights, California was recently unsealed by US District Judge James Otero.

Wong pleaded guilty in May to two counts of wire fraud, one count of tax evasion and one count of assisting in the preparation of a false tax document. He was scheduled to be sentenced December 14 and faces a maximum sentence of 18 years in prison.

Lim entered his plea last month to two counts of wire fraud and one count of money laundering. He faces up to 20 years in federal prison at his January 8 sentencing.

Authorities said Wong helped two food distribution companies owned or controlled by Lim get credit lines of $34 million and $9 million from HSBC Business Credit between 1998 and 2001.

Wong created false financial statements for both companies and also prepared false collateral reports on a regular basis, prosecutors said. When the companies defaulted on their credit lines, HSBC lost about $40 million.

Prosecutors said Wong also prepared false financial documents for another Asian food wholesaler that received about $9 million from HSBC. In that case, the bank was able to recover about $1 million.

Lim went to the Philippines in early 2002 after HSBC brought a civil action against him in Superior Court. He returned to the US in August and surrendered to authorities.

Lim's daughter, Catherine Miave Go, 32, of Los Angeles pleaded guilty to bank fraud earlier this year in another scheme that caused Wells Fargo Bank to suffer $8 million in losses. Go is scheduled to be sentenced on January 29.