Two loan brokers and a bank loan officer charged with bank fraud scheme | USAO-MA

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BOSTON — Three men were charged yesterday, and agreed to plead guilty, in connection with a scheme to defraud a Massachusetts-based bank and the US Small Business Administration (SBA).

Ted Capodilupo, 56, of South Easton; Joseph Masci, 70, of Boston; and Brian Ferris, 43, of Braintree, were each charged with one count of conspiracy to commit bank fraud.

According to the charging documents, between 2015 and 2018, Capodilupo, Masci, and Ferris agreed to defraud the bank and the SBA by submitting fraudulent loan applications to the bank, which administered the SBA’s Express Small Business Loan Program. , to secure bank loans backed by the SBA. SBA. Specifically, it is alleged that Capodilupo and Masci, who operated a loan brokerage business, submitted dozens of fraudulent loan applications to the bank on behalf of borrowers not eligible for traditional business loans. These loan applications misrepresented, among other things, the identity of the true beneficiaries of the loans and the companies for which the loans were requested.

Capodilupo and Masci also allegedly fabricated federal tax forms submitted in support of fraudulent loan applications, forged applicant signatures, and falsely stated that no brokers assisted in preparing or returning loan applications. Capodilupo and Masci allegedly charged borrowers fees for obtaining these fraudulent loans. It is alleged that Ferris, who worked as a loan officer at the bank, tricked the bank into issuing loans for which Capodilupo and Masci submitted requests and received a bribe from Capodilupo and Masci of around 500 $ per loan. The alleged scheme generated approximately $270,000 in fees for Capodilupo and Masci. Many of the loans the bank issued as a result of the fraudulent applications ultimately failed, resulting in substantial losses for the bank.

The charge of conspiracy to commit bank fraud carries a sentence of up to 30 years in prison; five years of probation; a fine of up to $1 million or double the gross gain or loss, whichever is greater; restitution; and forfeiture. Sentences are imposed by a federal district court judge based on the US Sentencing Guidelines and other statutory factors.

United States Attorney Rachael S. Rollins; Patricia Tarasca, Special Agent in Charge of the Office of the Inspector General of the Federal Deposit Insurance Corporation (FDIC-OIG), New York Region; Joseph R. Bonavolonta, special agent in charge of the Federal Bureau of Investigation, Boston office; Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General of the Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection; and Mark Hines, Assistant Inspector General for SBA Investigations, Office of the Inspector General, made the announcement. Assistant U.S. Attorney David M. Holcomb of Rollins’ Securities, Finance, and Cyber ​​Fraud Unit is prosecuting the case.

The details contained in the charging documents are allegations. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt by a court.

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