A New York City resident has pleaded guilty in U.S. District Court in Bangor, Maine, to charges related to mortgage fraud and operating an illegal marijuana grow house.
Court records show that Ken Yiu, 49, obtained an $80,000 residential mortgage loan from a Maine bank to purchase a house in Saint Albans. On his loan application, Yiu stated he intended to use the property as his primary residence. However, authorities found that he never lived at the location and instead used it for cultivating and distributing marijuana between September 2020 and January 2024.
Federal law enforcement agents interviewed Yiu in December 2024. During this interview, "Yiu admitted selling marijuana he grew at his property in Saint Albans to buyers in Massachusetts." In January 2025, agents executed a federal search warrant at the property and confirmed its use for growing and distributing marijuana.
Yiu faces significant penalties: up to 30 years in prison and a maximum fine of $1 million for mortgage fraud, as well as up to 20 years in prison and a maximum fine of $500,000 for drug-related offenses. Sentencing will occur after completion of a presentence investigative report by the U.S. Probation Office. The final sentence will be determined by a federal district court judge who will consider the U.S. Sentencing Guidelines along with other statutory factors.
Authorities noted that neither Yiu nor his property was licensed through the Maine Office of Cannabis Policy.
The investigation was conducted by multiple agencies including the FBI, U.S. Drug Enforcement Administration, Homeland Security Investigations, and IRS Criminal Investigation.
