A Westminster police officer and a Fountain Valley man were arrested on federal loan-sharking charges this week.
Anthony Duong Donner, 28, of Westminster, is a patrol officer with the Westminster Police Department. He is on administrative leave, according to FBI spokeswoman Laura Eimiller.
Co-defendant Kevin Khanh Tuan Do, 38, of Fountain Valley owns Do's Construction and Design in Westminster, Eimiller said.
The two were arrested on a federal complaint Friday alleging they were collecting extensions of credit by extortion, Eimiller said.
Donner is accused of using his badge to enforce collections on loans issued by Do.
The complaint centers on a business owner's allegation that he received a $170,000 loan from Do and made payments at a rate of 5 percent a month and 60 percent annually.
The business owner, known in the complaint as H.L., paid $168,000 on interest alone with none of the payments going to the principal, the complaint alleges.
When H.L. fell behind on payments, Do allegedly told Donner to use "police enforcement actions" against the business, the complaint alleges.
The two could face up to 20 years in federal prison and a fine of $250,000.
The pair made their first appearance in court Friday and were released on bond. They were ordered to return to court Sept. 20 for a preliminary hearing.
—City News Service.