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Ludlow Woman Pleads Guilty to Bank Fraud
Beth Zastawny, a 53-year-old resident of Ludlow, Massachusetts, has pleaded guilty to bank fraud and three counts of money laundering in connection with a $4.2 million loan package for her Chicopee-based company, Diecast Connections Company Inc.
According to the indictment, Zastawny committed bank fraud in January 2015 by submitting fake financial statements to Blue Hills Bank, which relied on her false representations to extend the loans. She made false representations about Diecast’s assets and liabilities to make it appear that Diecast’s financial condition was much stronger than it was.
After obtaining the loan proceeds, Zastawny paid back creditors who had not been disclosed to the bank, and the funds were used for purposes not called for in the loan agreement between Diecast and Blue Hills Bank. In July 2016, Blue Hills Bank foreclosed on the loan after Zastawny failed to meet the terms of the loan agreement, resulting in a substantial loss for the bank.
The indictment charges Zastawny with one count of bank fraud, which provides a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million. Each money laundering count provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
Zastawny’s sentencing is scheduled for October 1, 2019, before U.S. District Court Judge Mark G. Mastroianni.
Key Facts
- State: Massachusetts
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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