Long Island Loan Shark Gets 42 Months for $3.2M Bank Fraud Scheme

GARY CONFREDO, a 61-year-old man from East Northport, New York, was sentenced to 42 months in prison for his role in a $3.2 million bank loan scheme. Confredo, also known as “Gary Conte,” was the former operator of Goldstar Financial Management Corp., a financial services business based in Commack, New York.

According to the Department of Justice, Confredo conspired with others to submit fraudulent loan applications to Bank of America on behalf of Goldstar clients. The scheme involved altering tax returns and bank statements to falsely inflate the clients’ incomes and assets, allowing them to qualify for loans under Bank of America’s lending criteria.

Between November 2016 and October 2019, Confredo and his co-conspirators secured approximately $3.2 million in loans and lines of credit from Bank of America. However, the loans were not repaid, resulting in losses of approximately $1 million for the bank.

Confredo pleaded guilty to the charge in November 2022 and was ordered to pay $1,096,882 in restitution to Bank of America. The sentence was announced by Breon Peace, United States Attorney for the Eastern District of New York, and Daniel B. Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Division.

“The defendant’s scheme was full of lies and deception,” said Peace. “Today’s sentence sends a powerful message that cheating financial institutions for personal gain will be punished, and the cost will be significant.”

Brubaker added, “As a financial consultant, Confredo was a trusted member of the financial industry. However, instead of acting ethically, he used his position to submit fraudulent loan applications on his clients’ behalf. This scheme had a far-reaching and long-lasting negative impact on the financial industry and the American public.”

The case is being handled by the Criminal Section of the Office’s Long Island Division, with Assistant United States Attorney Bradley T. King leading the prosecution. The government’s case highlights the importance of investigating and prosecuting white-collar crimes to the fullest extent of the law.