Ep 17. Abacus: Small Enough to Jail

Abacus: Small Enough to Jail is the 17th episode of the 34th season of the award-winning investigative documentary series Frontline. The episode focuses on the only U.S. bank to face criminal charges following the 2008 financial crisis: Abacus Federal Savings Bank, a small, family-owned community bank in New York’s Chinatown.

In 2012, the Manhattan district attorney, Cyrus Vance Jr., brought a case against Abacus and 19 of its employees, alleging that they had committed mortgage fraud. According to Vance, Abacus had sold mortgages to borrowers who were not creditworthy, then packaged those mortgages into securities and sold them to investors. When those mortgages started to default, investors lost money, and Vance claimed that Abacus had knowingly and fraudulently caused them those losses.

The bank denied the charges, and its founder and CEO, Thomas Sung, claimed that the case was motivated by prejudice against the Asian American community. He argued that while many larger banks had engaged in illegal activity during the financial crisis, Abacus was being singled out because it was small, family-owned, and Chinese.

The case went to trial in 2015, and Frontline’s cameras were there to capture it all. The documentary follows the trial as it unfolds, from jury selection to closing arguments. We see the prosecution lay out its case, calling witnesses and presenting evidence of Abacus’s alleged wrongdoing. We see the defense team fight back, presenting evidence of its own and arguing that the government had failed to prove its case beyond a reasonable doubt.

Throughout the trial, we also see the incredible bond that exists between Thomas Sung and his family, who are all involved in the bank. They gather each night after court to discuss the day’s events, debriefing and strategizing for the next day. We learn about the history of Abacus, which was founded by Sung and his wife, and how it has served as a lifeline for the immigrant community in Chinatown for decades.

As the trial wears on, tensions rise and the stakes get higher. We see the emotional toll the case takes on Sung and his family, including his two daughters, Vera and Jill, who both work at the bank. They worry that the bank, and their family’s legacy, will be destroyed if Abacus is found guilty. We also see how the government’s case depends heavily on the testimony of a single witness, a former Abacus employee who admits to participating in the alleged fraud.

Ultimately, the jury must decide whether Abacus is guilty of the charges against it. The outcome of the trial will have major implications for both the bank and its employees, as well as for the larger financial system and the communities it serves.

Abacus: Small Enough to Jail is a gripping and emotionally charged documentary that shines a light on the complexities of our justice system and the ways in which it can unfairly target those who are least powerful. It is a must-watch for anyone interested in the behind-the-scenes workings of the financial crisis, as well as for those who care about justice and fairness in our society.