Phoenix, Ariz. – In a stunning reversal of fortune, the U.S. Attorney’s Office for the District of Arizona has recovered over $3.6 million in restitution for victims of Joseph Nicholas Gagliano’s bank fraud scheme.
Gagliano, an Arizona resident, was sentenced to 30 months in prison after being convicted on one count of Conspiracy to Commit Bank Fraud in October 2013. His case, U.S. v. Joseph Nicholas Gagliano, CR 12-00364-PHX-GMS, exposed the lengths he went to deceive lenders and the Small Business Administration (SBA) by providing false information on loan documents.
The deceitful scheme led to substantial losses for both the lenders and the SBA. The court ordered Gagliano to pay over $3.6 million in restitution as part of his sentence, a figure that was recently collected in full thanks to the tireless efforts of the U.S. Attorney’s Office.
Identifying Gagliano’s assets and commercial dealings, the office utilized its statutory judgment collection tools, securing a payment agreement and ensuring that every cent owed by Gagliano went back to his victims. This includes the taxpayer-supported SBA, which is instrumental in fostering small business growth.
The recovery was spearheaded by the Financial Litigation Program (FLP) of the U.S. Attorney’s Office. The FLP is tasked with collecting criminal monetary penalties, including fines and restitution, for federal crime victims. Their efforts ensured that Gagliano’s non-exempt property was used to compensate those affected by his fraudulent activities.
Assistant U.S. Attorneys Kevin Rapp and Vincent Creta of the District of Arizona, Phoenix, led the prosecution and financial litigation in this case. The successful recovery stands as a testament to their dedication and the office’s commitment to holding fraudsters accountable.
CASE NUMBER: CR 12-00364-PHX-GMS
RELEASE NUMBER: 2024-072-Gagliano
For more information on the U.S. Attorney’s Office, District of Arizona, visit here. Stay informed by following the U.S. Attorney’s Office, District of Arizona, on X at @USAO_AZ for the latest news.
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Key Facts
- State: Arizona
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime|Public Corruption
- Source: Official Source ↗
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