A Pittsfield businessman, Jeffrey Pierce, 51, of Pittsfield, Massachusetts, pleaded guilty today in federal court in Springfield to defrauding a credit union of $4 million. Pierce, who owned and operated five real estate development companies in Pittsfield, was charged with conspiracy to receive money through transactions of a credit union with intent to defraud the credit union and to make false statements to a federal credit union.
The crime, which occurred between 2005 and 2008, involved a former Vice President of Greylock Federal Credit Union (GFCU) authorizing approximately $4 million in various loans and modifications to Pierce and his companies in violation of GFCU’s loan policies. Pierce agreed to provide the Vice President with $134,773 in check payments from Pierce’s companies derived from GFCU loans that were paid to a front company created by the employee; the free use of a home constructed by one of Pierce’s companies with a GFCU loan; and the free use of a BMW automobile purchased by one of Pierce’s companies with a GFCU loan.
Pierce falsely stated to GFCU that the money paid by his companies to the front company were payments for design work that the Vice President’s wife provided to Pierce’s construction projects. The conspiracy charge provides for a sentence of no greater than five years in prison, up to three years of supervised release, and a fine of $250,000.
A sentencing hearing is scheduled for October 3, 2018, before U.S. District Court Judge Mark G. Mastroianni. United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, New England Field Division, made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office is prosecuting the case.
The case is being prosecuted by the United States Attorney’s Office for the District of Massachusetts. The Internal Revenue Service, Criminal Investigation, New England Field Division, assisted in the investigation.
A total of approximately $4 million was involved in the conspiracy, and Pierce faces a possible 5-year prison sentence, up to three years of supervised release, and a fine of $250,000.
Pierce’s companies, which included five real estate development companies, were involved in the conspiracy, and the Vice President of Greylock Federal Credit Union authorized the loans and modifications in violation of GFCU’s loan policies.
Key Facts
- State: Massachusetts
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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