$3.6 Million Scam: Gagliano’s SBA Scheme Unraveled
The U.S. Attorney’s Office for the District of Arizona has dealt a crushing blow to a local con artist, recovering $3.6 million in restitution for the victims of a brazen SBA loan scam.
Joseph Nicholas Gagliano, a resident of Arizona, was sentenced to 30 months in prison in October 2013 for conspiring to commit bank fraud. The scheme, which was orchestrated by Gagliano, involved obtaining Small Business Administration (SBA)-backed loans and loan modifications by providing false information on the loan documents about his identity, assets, and liabilities.
The scam, which was uncovered in U.S. v. Joseph Nicholas Gagliano, CR 12-00364-PHX-GMS, resulted in substantial losses to the lenders and the SBA. As part of his sentence, the court ordered Gagliano to pay over $3.6 million in restitution.
The U.S. Attorney’s Office pursued enforcement using its statutory judgment collection tools, identifying Gagliano’s commercial dealings and assets. After a payment agreement was reached, the Office collected Gagliano’s restitution obligation in full, ensuring that Gagliano’s crime victims, including the taxpayer-supported SBA, received full compensation for the harm caused by Gagliano’s scheme.
The debt was collected by the U.S. Attorney’s Office Financial Litigation Program (“FLP”), which works to identify debtors’ assets and income and uses both federal and state law remedies to enforce collection from debtors’ non-exempt property.
Assistant U.S. Attorney Kevin Rapp handled the prosecution, while Assistant U.S. Attorney Vincent Creta handled the financial litigation. The recovery of $3.6 million in restitution serves as a stark reminder of the U.S. Attorney’s Office commitment to holding perpetrators accountable and providing justice for crime victims.
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/. Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.
Case Number: CR 12-00364-PHX-GMS. Release Number: 2024-072-Gagliano.
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Key Facts
- State: Arizona
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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