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

BOSTON – Three men were charged yesterday and have agreed to plead guilty in a scheme to defraud a Massachusetts-based bank and the U.S. 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 indictment 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 small business express loan program. , in order to secure bank loans guaranteed by the 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 ineligible for traditional commercial loans. These loan requests misrepresented, among other things, the identity of the true beneficiaries of the loans and of 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 applicants’ signatures, and falsely reported that no broker had helped prepare or return loan applications. Capodilupo and Masci allegedly charged borrowers a fee for obtaining these fraudulent loans. It is alleged that Ferris, who worked as a loan officer at the bank, caused the bank to issue loans for which Capodilupo and Masci submitted demands and received a bribe from Capodilupo and Masci of around 500 $ per loan. The alleged scheme generated approximately $ 270,000 in costs for Capodilupo and Masci. Many of the loans the bank granted as a result of fraudulent claims eventually defaulted, 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 supervised release; a fine of up to $ 1 million or double the gross gain or loss, whichever is greater; restitution; and confiscation. Sentences are imposed by a judge in a federal district court based on US sentencing guidelines and other statutory factors.

United States lawyer 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 the Inspector General of the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection; and Mark Hines, Assistant Inspector General for Investigations for the SBA, Office of the Inspector General, made the announcement. Deputy US attorney David M. Holcomb of Rollins’ Securities, Financial & Cyber ​​Fraud unit is pursuing the case.

Details contained in the indictment documents are allegations. Defendants are presumed innocent unless and until their guilt has been proven beyond a reasonable doubt by a court.

Dorothy H. Lewis