Abacus: Small Enough to Jail.

Abacus: Small Enough to Jail, a documentary by Steve James (Hoop Dreams) that originally aired on PBS’s Frontline, earned one of the five nominations for Best Documentary Feature at this year’s Oscars. The film follows Abacus, the only bank to face criminal prosecution in the wake of the 2008 mortgage crisis, through the subsequent trial, largely from the perspective of the Sung family, who founded and still run the small neighborhood bank, based in Manhattan’s Chinatown. The resulting picture is one of politically-motivated prosecution of a non-white institution, of whom the overly ambitious Manhattan DA Cyrus Vance, Jr., could make an example, while getting himself in front of the cameras. You can stream the film for free on PBS’s site, or via Amazon Prime.

Abacus Federal Savings Bank discovered in 2010-11 that one of its loan officers had submitted several loan applications with false information – such as forged employment info or inflated income claims – and had skimmed money from some clients, so they reported the violations to the Office of Thrift Supervision themselves, fired the offending loan officer, and began examining other loans he’d made. Despite the self-reporting, the Manhattan DA’s office chose in 2012 to indict the bank and its officers on over 200 counts related to mortgage fraud, including grand larceny, threatening the group with jail time, fines, and the potential closure of the bank. The Sung family, who founded the bank in 1984, chose to fight all charges; one of their daughters quit her job in the DA’s office and went to work on her family’s defense. Their defense included evidence that the offending loan officers had taken steps to hide their misdeeds from executives, that the loans in question still performed, and that their decision to report themselves showed they were not engaged in any systematic attempt to defraud Fannie Mae, which purchased many of the loans in question.

The Sungs are the stars of Abacus, of course, and their dismay and indignation power the film. It’s clear from the start that the family members involved in the bank saw no choice but to fight the charges, recognizing that even a generous plea agreement might ruin the company, and in the film they repeatedly emphasize what the bank means to the Chinese community in which it operates. Tom Sung, a co-founder of the bank and the family patriarch, recounts the difficulty Chinese entrepreneurs would have in obtaining loans from white-owned banks that were perfectly happy to take those same customers’ deposits. Along with community activist Don Lee (who has a politician’s coiffure) and several reporters who covered the case, the Sungs describe the different norms of the Chinese business world, and how American rules that might target mortgage fraud also made it harder for immigrants to obtain such loans, even if their income was legitimate and their default rates were extremely low. (Abacus claims a 0.5% default rate on mortgages it originates; the national rate for serious delinquency reached 4.9% in 2010 and dropped to a ten-year low of 1.1% last year.)

Vance and Polly Greenberg, who served as chief of the DA’s Major Economic Crimes division from 2012 to 2015, both appear in the film to their own detriment, as they come off in the final product as vindictive and unapologetic despite evidence that they put extremely unreliable witnesses on the stand, possibly suborning perjury in the process. (The film was made before revelations that Vance declined to prosecute Harvey Weinstein for sexual assault around the time that Weinstein contributed to Vance’s campaign.) Their star witness, in particular, lied repeatedly under oath and eventually had his plea deal revoked as a result of his false testimony. It’s entirely possible that James isn’t showing enough of the prosecution’s side of the case, although given his reputation and the ultimate outcome of the trial, I am inclined to give him and the film the benefit of the doubt. At the absolute least, Vance and Greenberg failed in their duty to do sufficient due diligence on their key witnesses, and that opens them up to charges of malicious, racially-motivated prosecution. Vance Jr. was unopposed in the November election, which is too bad, as Abacus would make a fine campaign film for anyone running against him.

I’ve seen three of the five nominees for this category now, with Netflix’s Strong Island downloaded for my next flight, and Faces Places due out on DVD at least on March 6th (after the awards … this is so stupid; if you’re nominated and can’t get into theaters, put it out to stream right away, I am trying to give you my money). Abacus is the best made of the three documentaries I’ve seen, but lacks the emotional punch of Last Men in Aleppo or the holy-crap aspects of the more timely Icarus. FiveThirtyEight’s Walt Hickey has pointed out that this year’s slate of nominees is extremely weird anyway.