The Department of Justice announced Tuesday that it has arrested Chung Yu “Louis” Yeung of San Dimas for his alleged role in a scheme that Pasadena’s East West Bank said cost it more than $9 million. Yeung’s alleged co-conspirator, Guo Xiang “David” Fan, remains at large.

Fan and Yeung, president and vice president, respectively, of portable generator company Eastern Tools and Equipment in Ontario, are accused of overstating the firm’s accounts receivable through phony transactions with shell companies they created. The men are alleged to have moved money from Eastern’s accounts into the shell companies’ accounts to fake actual business activity.

The accounts were originally with San Francisco’s United Commercial Bank but were taken over by East West when it acquired United Commercial out of FDIC receivership in 2009.

According to the Oct. 22 indictment, Fan and Yeung used these fraudulent accounts receivable statements to increase the company’s line of credit with United Commercial and later East West, and then siphoned those funds into their personal accounts. The indictment was sealed until Yeung’s arrest.