Two men are facing numerous federal criminal charges for allegedly lying to banks and operating illegal marijuana grows.
Yuantong Liang, 36, and Yongliang Deng, 34, allegedly lied to banks to obtain mortgages for three houses in 2020. The houses, in Bucksport, Eddington and Canaan, were then used to illegally grow and process marijuana, according to court records.
The men, both U.S. citizens, were arrested Thursday in New York. They were indicted by a federal grand jury Wednesday, according to records in the U.S. District Court of Maine in Bangor.
Federal law enforcement has cracked down on illegal marijuana grow facilities across Maine in the last two years. Liang and Deng are among only a few people to face criminal charges for operating the alleged grow houses.
Liang was indicted on 15 felony charges: five counts of making a false statement, three counts of maintaining a marijuana involved premise, two counts of bank fraud and one count each of conspiracy to commit bank fraud, money laundering promotion and making a false statement to federal law enforcement.
Deng was indicted on one charge each of conspiracy to commit bank fraud, bank fraud and making a false statement to federal law enforcement.
The men defrauded two Maine banks to obtain mortgages by using co-conspirators to apply for the loans, according to court records. They received $542,000 in mortgages for the three properties.
Those homes were then used to illegally grow and process marijuana, according to court records.
Liang paid two unnamed co-conspirators to obtain the mortgages, the records said. One co-conspirator gave Liang the personal information necessary to get a mortgage, as well as homeowners insurance, saying it would be the man’s primary home, which was a lie, according to court records.
The co-conspirator then received about $55,000 from Liang and his wife for a down payment and closing costs for a house in Bucksport, the records said. Liang opened a bank account in the man’s name, but maintained control of the account and deposited money for mortgage payments.
The house at 1403 Bucksmills Road was destroyed in a fire on Feb. 2, 2022. A fire investigator was unable to determine the cause of the fire, but it was likely related to the “numerous grow lights and associated marijuana cultivation items being used,” according to the report obtained by the Bangor Daily News.
A similar process of falsifying documents to obtain a mortgage repeated with Deng to get a house in Eddington and then again for the second unnamed co-conspirator to buy a house in Canaan, according to court records.
Liang allegedly falsified payroll information to provide proof of income for the second co-conspirator so the person was able to obtain a mortgage, according to court records.
Liang had a hearing in New York on Thursday to start the proceedings to transfer him to Maine. He is held in custody until a bond hearing Tuesday.
Deng was granted a $50,000 cash or surety bond Thursday. It stipulates, in part, that he is not allowed to leave New York City and Long Island except to travel to Maine for court appearances.
