Two Loan Brokers and One Bank Loan Officer Charged in Bank Fraud Scheme | USAO-MA

Salem Man Pleads Guilty to Small Business Loan Fraud and Filing Fraudulent Tax Returns | USAO-MA
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BOSTON – Three men were indicted yesterday, and agreed to plead guilty in connection with a scheme to defraud a Massachusetts bank and the US Small Business Administration (SBA).

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

According to shipping 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 ran the SBA’s Rapid Small Business Loan Program, to secure SBA-guaranteed bank loans. Specifically, Capodilupo and Masci, who ran a loan brokerage firm, allegedly submitted dozens of fraudulent loan applications to the bank on behalf of borrowers who did not qualify for conventional business loans. These loan applications presented a misrepresentation of, among other things, the identity of the true beneficiaries of the loans and the companies for which the loans were sought.

Capodilupo and Masci also allegedly fabricated federal tax forms filed in support of fraudulent loan applications, forged applicant signatures, and falsely indicated that no intermediary assisted in preparing or referring loan applications. Capodilupo and Masci allegedly charged borrowers a fee for these fraudulent loans. Ferris, who served as a loan officer at the bank, allegedly caused the bank to issue loans in which Capodilupo and Masci applied and received a commission from Capodilupo and Masci of about $500 per loan. The alleged scheme generated nearly $270,000 in fees for Capodilupo and Masci. Many loans issued by the bank as a result of fraudulent applications eventually defaulted, which led to huge 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 twice your gross profit or loss, whichever is greater; Refund and confiscation. Sentencing is imposed by a federal district court judge based on US sentencing guidelines and other legal factors.

American attorney Rachel S. Rollins; Patricia Tarasca, Special Agent in charge of the Office of the Inspector General, Federal Deposit Insurance Corporation (FDIC-OIG), New York District; Joseph R. Bonavolonta, Special Agent in Charge of the FBI, Boston Office; Stephen Donnelly, Acting Special Agent in Charge, Eastern District, Office of the Inspector General for the Board of Governors of the Federal Reserve System and Office of Consumer Financial Protection; The announcement was made by Mark Haynes, assistant inspector general for investigations in the Small Business Administration, Office of Inspector General. Assistant US Attorney David M. Holcomb of Rollins Securities and Electronic Fraud and Internet Fraud Unit is pursuing the case.

Details in the indictment documents are allegations. Defendants are innocent unless and until proven guilty beyond reasonable doubt in a court of law.

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